Thanks to the Taxpayer Relief Act of 1997, one can profit greatly from tax benefits if they so decide to sell their home.
All this depends on on condition though – you have to be able to prove that you’ve lived in that home for two years and above.
Of course, this isn’t a one-time deal use this provision every time you sell a home. For example, if you have two homes, and if you’ve lived in one of them for two years or so, you should qualify for the tax benefits if you sell the one you’ve lived.
But that’s not all, if you move into the second home, and live for two years or more, and decide to sell, you can still avail of the aforementioned tax benefits.
There’s a limit as well, for the tax benefits that you can enjoy, and that involves capital gains up to $500,000 for married people and $250,000 for singles or married taxpayers who file separately.
However, there are other costs that can make a dent in the gains that you can make from selling your home such as moving and selling costs.
With the latter, some of the costs that occur range from administrative and legal costs, title insurance, real estate broker’s commissions and inspection fees.
As for the former, you can avail of deductions based on the conditions that you move 50 miles away from your current location while also working full-time there for 39 out of 52 weeks after you move. Expenses for storing your goods, lodging, travel and transportation costs are eligible for deductions.
If you have any questions, contact a tax professional or local and state authorities for more home selling information.