Thinking about selling your house in Kansas City ? Selling your house quickly offers you a number of great benefits! Learn how a fast sale of your house in Kansas City can benefit you come tax time!
Selling your house quickly can have a number of benefits on this year’s taxes. Check with your tax accountant on what specific benefits there could be for you.
From deductions to saved property tax costs, when you’re selling your house, the best thing you can do is not to pay taxes on the sale. Working with Angel and Jeramie at Mastiff Home Buyers to sell your house fast in Kansas City can be extremely beneficial. What expenses can you write off? Keep reading to learn more about how a fast sale of your house will benefit you come tax time!
What You Can and Can’t Write Off
When selling your house in Kansas City , there are a number of great tax benefits that you can take advantage of. The Tax Cuts and Jobs act changed a few things for home sellers, but there is still a lot to take advantage of. Your accountant should be working to ensure you get every deduction
Costs To Sell – This is the capital gains exclusion that you may be able to benefit from if you meet the criteria. If your house is your primary residence and you have lived there for two of the past five years, you will be able to write off many costs directly tied to the sale of your home. This includes legal fees, advertising expenses, escrow costs, and even the agent’s commission. These costs are subtracted from the sale of your home, thus having a positive effect on your cost basis.
Repairs – Repair costs directly tied to the sale of your home can be deducted as long as the repairs were made within 90 days of the property closing. Repairs made must be permanent and done specifically to sell the house. Other repairs are not deductible as it is your duty to keep up with the house, repairing it as needed.
Mortgage Interest deduction- Mortgage interest can be deducted on mortgage debts up to $750,000 on debt taken out after December 15, 2017. If you took out debt prior to that date, you may be able to deduct mortgage interest on a $1,000,000,000 mortgage. This goes with your itemized deductions. If the about of all of your itemized deductions are less than $12,200 as a single person, you may be better off going with the standard deduction. The standard deduction doubles for married couples.
Property Taxes – Property taxes can still be deducted at an amount of up to $10,000. Only in a few states will you find your taxes being higher than this. Your mortgage interest and property taxes are added to your itemized deductions for the year. You may find that the standard deduction is a better choice for you.
The IRS changes the tax codes every year, so it is important to stay up to date with the changes as they could have a huge financial impact on your real estate transactions. We always recommend talking to your accountant so you can fully understand how a fast sale of your house in Kansas City will affect your taxes for the coming year.
Capital Gains Taxes
Capital gains taxes occur when the homeowner receives a large profit off of the sale of their home. When selling your house in Kansas City , $250,000 may be excluded if you are single and $500,000 excluded for married couples who are filing a joint return. As such, you will be taxed on any profits over the exclusion amount. While most people don’t have to worry about these taxes, they could apply, especially if you have lived in the home for a while. The taxes are also based on your income. If you are making less than $39,375, you won’t have to pay a thing! The capital gains rate for income of this amount or less is 0%!
Taking payments on your house can potentially help you avoid or reduce capital gains taxes if you are selling the house and have owned it for more than one year.
When you sell a house for more than what you originally paid for it, you may be subject to capital gains tax on the profit. However, if you sell the house on an installment basis, meaning the buyer makes payments to you over time instead of paying the full amount up front, you may be able to spread out the tax liability over the course of the payments.
This is because you only have to pay capital gains tax on the portion of each payment that represents profit. The rest of the payment is considered a return of your investment in the property and is not subject to capital gains tax.
It’s important to note that there are specific rules and requirements for installment sales, and you should consult with a tax professional to ensure you are following the proper procedures and maximizing your tax benefits.
We know that property taxes have risen in most every community. The faster you sell, the lower your property tax obligation will be for this year! Property taxes add up fast and you are responsible for them up until the day of closing unless other arrangements have been agreed to within the contract. When you work with a real estate agent in Kansas City , your house could remain listed for months, resulting in thousands of dollars in taxes and other holding costs. When you choose to sell fast to a cash home buyer in Kansas City , you will not only be free from further monthly tax obligation, but you will also save on homeowner’s insurance costs, monthly utility bills, routine maintenance, and costs you would have faced selling your house with a Kansas City real estate agent.
How To Sell Your House Fast In Kansas City
The best way to ensure your house will be sold quickly is to work with a reputable cash home buyer in Kansas City such as Mastiff Home Buyers . When you work with us, you will be able to sell your house quickly and always for a fair price. We will handle all of the repairs, clean-up, and everything else that comes along with selling. We can also help you with an installment sale if you want to save on capital gains. Working with us can save thousands, not to mention the money you will be able to save in closing costs. If you are looking for a fast sale of your house in Kansas City , this is it! Our process will allow you to sell your house in only a matter of days no matter what condition it is in!
Reminder, get in touch with your tax accountant on how selling may impact this year’s tax bill. If you need flexibility in your timeline, we can close when you prefer.
Get in touch with Mastiff Home Buyers today to learn more about getting a fast sale of your house in Kansas City !