Tax Tips For Home Sellers

NORFOLK, VA, Oct 18, 2013—Tax season may feel far away, but with the rush of the holiday season nearly upon us, it's important to start thinking ahead, especially if you sold a home this year. Louis Eisenberg, Associate Broker REALTOR ABR SFR of Prudential Towne Realty takes us through several of the need-to-know facts about tax season for home sellers.

Under $250,000? You may be able to exclude gains
“Just because you profited on your home sale does not mean you have to pay taxes on it,” says Eisenberg. “In fact, if you're eligible to exclude your gains, you don't even need to note that you sold your home at all when you file.

To be eligible, you need to have made a profit of less than  $500,000 on a joint return or $250,000 on an individual return, and the home must have been your primary residence for at least two years prior to sale.

You may not have to report your home sale at all
“If you can exclude all of the gain--meaning it was under 500,00 on a joint return or $250,000 on a single--you probably don’t need to report the sale of your home on your tax return at all,” says Eisenberg. Double check this with your accountant, but this is the case in most situations.

But you can't deduct your losses
While it's great you can exclude financial gains, you can't deduct financial losses, which is unfortunate.

The more homes, the more complicated tax-time can be
“Several complications can arise from owning more than one property, be it an investment or vacation home,” says Eisenberg. The home you live in the majority of the time is considered your primary residence. This is important because it's necessary for you to report any gains you may have made on your second home.

If you can't exclude gains...
If you can’t exclude all of the gain because it was over the allotted amount, or you choose not to exclude it, then you will need to report the sale on your tax return. “Keep an eye out for Form 1099-S, Proceeds From Real Estate Transactions,” suggests Eisenberg.

If you’re selling your first home...
One more reminder about selling your home and tax season, says Eisenberg. “Special rules may apply when you sell a home for which you received the first-time homebuyer credit.”

Keep in mind that tax time can be stressful and busy, so it's always a good idea to have a professional look over your paperwork if you had an unusual financial year.

For more information on selling your home, please contact Louis Eisenberg, Prudential Towne Realty, leisenberg@prudentialtownerealty.com, (757) 572-7244, or www.LouisEisenberg.com

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What to know about buying a home in the Fall

NORFOLK, VA, Oct 16, 2013—The fall often calls for a slowdown from the bustling Summer homebuying season. However, due to affordable interest rates and home prices, this fall is proving to be a busier buying time than the falls that have come before. Louis Eisenberg, Associate Broker REALTOR ABR SFR of Prudential Towne Realty let's us in on a few tips for buying a home in the fall:

Check up on homes you liked this summer. Remember that gorgeous home with the wrap-around porch you fell in love with in June, but passed on because it was a bit out of your price range? Check back. “If it's still on the market, it may have dropped in price, and even if it hasn't, offering a little less than asking price may be a good idea if the seller is trying to close before winter,” comments Eisenberg.

Buy a home that needs a little TLC. In the fall, not only are homes cheaper, but building materials are, too. Home improvement stores typically have huge fall sales now that the prime building season (looking at you, summer) is over. “So if you are unsure about a home because it needs a renovated kitchen or bathroom, you may be able to swing it if you make good use of the season's discounts,” says Eisenberg.

Take advantage of more selection. While many areas around the country are experiencing a shortage in listing, the fall will offer more selection than the summer or spring. Use this to your advantage by shopping around and comparing prices.

Don't rush. Just as sellers are looking to unload their properties before winter, you may be feeling rushed to purchase one before the holidays start rolling in. “Take your time and make intelligent buying decisions – you want a home you can enjoy for years to come, so don't allow the changing seasons to pressure you,” notes Eisenberg.

For more real estate information, please contact Louis Eisenberg, Prudential Towne Realty, 109 E. Main Street, Norfolk, VA 23510, leisenberg@prudentialtownerealty.com, 757-572-7244, or www.LouisEisenberg.com

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