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Other major tax advantage is zero tax on up to $250,000 in gains ($500K for married couples)
by danhak 6y ago
Other major tax advantage is zero tax on up to $250,000 in gains ($500K for married couples)
- bluedevil2k 6y agoTaking your point even further, you can raise the cost basis of your house by all the improvements you made to the house while you lived there. If you added a $50k pool to a $400k home, your cost basis is now $450k. Further, you can deduct all the sales commissions (real estate 6% fees) from the profits as well.
- sokoloff 6y agoYou deduct the sales commissions because that’s money you lost in the round-trip. (Your profits were actually reduced by the amount you paid in commissions and we tax profits/gains.)