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 was phenomenal during every step of selling my father's home. This process was extremely difficult for me, as... read moreJill was phenomenal during every step of selling my father's home. This process was extremely difficult for me, as my father passed away last year. Jill listened to EVERY story I had, and there were a lot of them! She allowed me to share the memories of the house, which helped me prepare to let it go.
She is very knowledgeable in what to and what not to do in regards to getting the home ready to sell, what to tackle during the negotiation process and she made the closing extremely convenient. She was thoughtful enough to place the "sold" sign on the property a week in advance, to allow me time to process it all.
Paying constant attention to what is happening around your listing is one of JIll's many strengths. Her goal is to get you the most money for your property, and she has different strategies to that end result.
I not only gained a new realtor, but in JIll, I also gained a friend! I will be forever grateful for her through this tough process and I know my Dad would have loved her! "Thanks," will never be enough! read less