What tax deductions can I claim as a home seller?

What tax deductions can I claim as a home seller?

As a home seller, you may be eligible for several tax deductions, including costs related to selling your home, such as real estate agent commissions, advertising fees, and repairs made to enhance the sale.

Are there any specific deductions for home improvements?

Yes, if you made improvements to your home that increased its value or extended its life, you may be able to deduct those costs from your capital gains when you sell.

What about closing costs? Can I deduct those?

Certain closing costs can be deducted, such as points paid to lower your mortgage interest rate. However, most closing costs are not deductible.

How do I report these deductions on my tax return?

You typically report these deductions on Schedule A of your tax return. It's advisable to keep detailed records of all expenses related to the sale.

Is there a limit to how much I can deduct?

There are limits based on your capital gains and the specific deductions you claim. It's best to consult a tax professional for personalized advice.