Two years ago you bought a Spring Texas home. In return for buying a home, our government gave you an $8,000 tax credit. It was a sweet deal!!
Today you just found out your employer is moving its corporate office. Your 10 minute drive to work will turn into 50 minutes. You want to sell your Spring Texas home and move because a 50 minute commute to work will drive you insane. The only thing holding you back from listing your house is you would have to repay the $8,000 tax credit since you haven’t lived in the home for 36 months.
1. the home ceased to be your primary residence within 36 months after the date you purchased it
2. you sold the home for a gain of $8,000 or more. The sale must be made to a person unrelated to you.
To calculate the loss or gain on the sale of your house:
1. Calculate Net Sales Price. Sales Price – commissions / Realtor fees – advertising expenses – legal expenses = Net Sales Price
2. Calculate Adjusted Basis. Purchase Price + legal fees + recording fees + survey fees + owners title insurance, if paid by you + cost of additions or improvements = Adjusted Basis of home
Loss or Gain on the sale of your house = Net Sales Price – Adjusted Basis of home
If your gain was less than or equal to $8,000, you would owe the IRS the entire amount of the gain. If the gain was more than $8,000, you would owe the IRS $8,000.
If you sold your Spring Texas house for a loss, you would NOT have to repay any of the $8,000 tax credit.
I admit it’s a tad bit complicated. It wouldn’t be an IRS rule if it wasn’t. Contact your tax accountant and seek guidance as you may be able to move without having to repay the $8,000 tax credit.
Jill is not your typical Realtor. She listens to your needs and understands your limitations. She has an... read moreJill is not your typical Realtor. She listens to your needs and understands your limitations. She has an eye for detail and knows what sells. When she gives you a list of things to do....DO IT!! It will only help you sell your home quickly and get top dollar. Her marketing plan sets her apart from most Realtors. Every single person that saw the sales video commented on how professional and impressive it was. read less