Less Than A Month To Sell Before Possible Tax Hike ~
If you’ve been thinking about selling your home, now is the time to get in touch with your realtor. With new requirements that may go into effect at the start of the new year, some sellers will need to have a sales contract signed by the end of 2017 in order to avoid a potentially large tax bill. Currently when selling their primary residence, homeowners must have lived in their home 2 years out of the last 5 years. That is changing however, with the new tax bill requiring homeowners to live in their homes at least 5 out of the last 8 years to qualify for capital gains tax exclusions on the sale of their primary home.
There is an exception included in the new Senate bill for transactions in which the contract is written and signed before January 1, 2018, even if it closes in 2018. The house bill did not contain such exceptions. What does this means to homeowners thinking about selling? Now is the time to visit with your realtor and get a contract in place.
It’s also expected that if both mortgage interest and real estate taxes deductions were to be eliminated, home prices could fall any where from 7% to 11%. That’s a decline in home value of approximately $24,000 – $36,000 for the typical homeowner. For more information on how the new Senate Bill could affect home values and capital gains taxes, Click Here. Be sure to select your state in the drop down for facts on tax deductions where your home is located.
If you’re thinking about selling your home or would like a market analysis, Call Me now.
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