When Selling My Chicagoland Home, What Taxes Do I Pay?
Whenever you have to sell your home, whether you have to downsize or you are looking for a larger house, there are a lot of decisions to make. Do you want to live somewhere urban or rural? Do you want a huge backyard, or are you good at economizing your space? If you are daunted by the prospect of paying real-estate taxes, you will be excited to learn what you need to know about taxes when selling your home. This is particularly useful for selling your home quickly.
Do You Need to Pay Any Taxes?
In some cases, you will have to pay taxes when you are selling your property. However, there are also exceptions that can help you avoid paying taxes entirely, or give you a hefty discount. If you have lived at your home for at least two years, then the first quarter-million dollars you make from selling your home is completely tax-free, meaning you pay no taxes on it at all. If you and your spouse file a joint tax return, this amount can double.
How to Calculate the Potential Profit of your Home Sale
To estimate your potential profit and whether you’ll need to pay taxes, you will have to figure out your home’s value and find comparable homes in the area that have sold to help you. Add in the money you spent on repairs, improvements, and renovations. Estimate the closing costs, realtor’s fees, commissions, and other expenses. Once you know all of these, you can calculate the amount you can sell your home for and compare it to your current tax exemption (250k or 500k)
Apply for a Reduced Exclusion
If you owe taxes, there is still a possibility that you can claim part of a tax break. The reduced exclusion option is available for certain people if there are life circumstances that forced the home sale. If you have recently experienced a change in employment, serious health issues, divorce, multiple births from a single pregnancy, or any other unforeseen situations. If you are not sure whether you are qualified for a reduced exclusion, talk to a professional with tax experience to clarify the next best steps in your situation.
Selling Your Home to a Real Estate Investment Company to Avoid Paying Taxes
If you are looking for a great way to avoid paying taxes is to sell your house to a cash buyer like Tony Buys Homes. Are you asking for someone to buy my home in Chicagoland, well we buy houses fast, no matter what condition they are in. If you want to sell your house fast in the Chicagoland area, we are ready to assist you. We will pay you cash for your home in as little as one week. Our mission is to make the home-sale process as easy, fast, and straightforward as possible. If you have any questions, do not hesitate to contact us online or call our local Chicagoland & Naperville office at 815-488-6373. Let Tony Buys Homes help you with fast cash when you need it most!