Just do the Math! Can Selling Your Home Help You Relocate To Richmond Virginia?

Did you know that selling your home can save you money—tax money, that is!

If you are contemplating selling your home in Richmond Virginia or beyond and are wondering if there is a way to take advantage of any tax deductions, the answer is…SURE THING!

Even with the changes brought about by the Tax Cuts and Jobs Act, there are some tax deductions that can help you save a few pennies in your piggy bank.  Interested?  Take a peek at the list below and then discuss the possibilities with your tax accountant to confirm that these deductions apply to your individual situation

1. Selling expenditures

If you have expenses that are directly related to the selling of your home (ex. Legal and escrow fees, advertising expenses, commissions, etc.), you may be able to deduct these costs.  Just keep in mind that these are not deducted in the same manner as your mortgage interest, for example.  Your tax professional can guide you through the correct process.

2. Fixer Upper Costs

This could be another win!  If you have made some repairs or updated a portion of your home to get more bang from your buck, you may be able to take advantage of these costs as tax deductions as long as they were made within a specified time period.

3. Property Taxes

Have you paid your property taxes by the established deadline?  If so, look into the possibility of deducting a portion of the property taxes paid up to the time of sale as a component of your itemized deductions if you qualify.

4. Mortgage Interest

Similar to property taxes, this could mean more money in your bank account by deducting a portion of your interest for the part of the year you owned the home as a component of your itemized deductions if you qualify.

5. Capital Gains

This doesn’t sound like a deduction because it’s not, technically.  It’s more like an exclusion.  But you may still like the sound of it if you have lived in your home for at least two of the previous five-year period and meet some other stipulations.

So…check it out with your tax advisor!  You may find cost savings you didn’t know you had when moving to Richmond Virginia.