Tax questions for buying and selling a home?
Tax questions for buying and selling a home?
If you buy and sell a home in the same tax year do you know what form you will have to fill out? Also does the mortgage company send you any tax paperwork. I know nothing about taxes on homes and what to do. Any advice on what forms or online forms to use would be great. Thanks
Answers:
...Tammy...: Not sure what form to use but we claim the interest we paid during the year and my mortage company sends me a statement.You should've gotten than already.
If you've sold a house and wondering about claiming what you made....when we sold ours we didnt have to claim it.You get a one time deal of not claiming anything under $250,000...but your state may be different and that was in 2006....mightve changed.
But I DO claim the interest..we pay over $12,000 a yr. So I'd find out before doing taxes.
H&R Block does my taxes so I dont know what the form is..sorry...
2009-02-09 15:40:09
2009-02-09 15:40:09
Chosen Answer
hrblock.laura: If you sell a home you are generally able to exclude gains of up to $250,000 or $500,000 if married filing jointly. You must have to have owned the home for at least 2 years and lived in the home as your main home for at least 2 years. Check out the link below to IRS Pub 17, page 107. There is no specific form to fill out but there is a worksheet in IRS Pub 523 linked below. The mortgage company usually just sends you your normal 1098 form to report the mortgage interest and real estate taxes paid on each property. There could be other expenses such as points that could be reported on the 1098 or may be listed on the closing statement. So bottom line, if you fit the ownership and use tests and do not have a gain exceeding the limits, you do not have a gain to report on your income tax return for selling your home. Good luck, I hope this helps. Laura H ? H&R Block ? Senior Tax Advisor 5 **This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.
2009-02-09 15:41:57
hrblock.laura: If you sell a home you are generally able to exclude gains of up to $250,000 or $500,000 if married filing jointly. You must have to have owned the home for at least 2 years and lived in the home as your main home for at least 2 years. Check out the link below to IRS Pub 17, page 107. There is no specific form to fill out but there is a worksheet in IRS Pub 523 linked below. The mortgage company usually just sends you your normal 1098 form to report the mortgage interest and real estate taxes paid on each property. There could be other expenses such as points that could be reported on the 1098 or may be listed on the closing statement. So bottom line, if you fit the ownership and use tests and do not have a gain exceeding the limits, you do not have a gain to report on your income tax return for selling your home. Good luck, I hope this helps. Laura H ? H&R Block ? Senior Tax Advisor 5 **This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.
2009-02-09 15:41:57