Monday, July 5, 2010

Happy 4th of July!

I hope you all had a safe and happy 4th of July! I always enjoy the 4th with my family and friends, and I hope you were able to as well.

But the 4th also gets me thinking about our government, and taxes. Your house is one of the best tax-cutting assets, starting with deductions for all or part of your mortgage interest, any points you paid to get the mortgage, and your property tax payments can all cut your annual tax bill.

But perhaps the best tax-saving opportunity comes when you sell your house. Believe it or not, you may qualify to exclude all or part of any gain from the sale of your main home from your income. According to the IRS, to claim the exclusion, you must meet the following ownership and use tests:

* You must have owned the home for at least two years
* You must have lived in the home as your main home for at least two years

From there, if you have a gain from the sale of your main home you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).

As a professional real estate agent, I can help you navigate this process and save taxes! What a great way to celebrate the 4th!

Happy Independence Day,
Noah Hultgren