Thinking about selling your house in Chicago? Selling your house quickly offers you a number of great benefits! Learn how a fast sale of your house can benefit you come tax time!
Selling your house quickly can have a number of benefits on this year’s taxes. From deductions to saved property tax costs, working with the team at Chicago Home Buyers to sell your house fast in Chicago can be extremely beneficial. Keep reading to learn more about how a fast sale of your house will benefit you come tax time!
What You Can and Can’t Write Off
When selling your house in Chicago, there are a number of great tax benefits that you can take advantage of. The Tax Cuts and Jobs act changed a few things for home sellers, but there is still a lot to take advantage of.
Costs To Sell – If your house is your primary residence and you have lived there for two of the past five years, you will be able to write off many costs directly tied to the sale of your home. This includes legal fees, advertising expenses, escrow costs, and even the agent’s commission. These costs are subtracted from the sale of your home, thus having a positive effect on your cost basis.
Repairs – Repair costs directly tied to the sale of your home can be deducted as long as the repairs were made within 90 days of the property closing. Repairs made must be permanent and done specifically to sell the house. Other repairs are not deductible as it is your duty to keep up with the house, repairing it as needed.
Mortgage Interest – Mortgage interest can be deducted on mortgage debts up to $750,000. This goes with your itemized deductions. If the about of all of your itemized deductions are less than $12,200 as a single person, you are better off going with the standard deduction. The standard deduction doubles for married couples.
Property Taxes – Property taxes can still be deducted at an amount of up to $10,000. Only in a few states will you find your taxes being higher than this. Your mortgage interest and property taxes are added to your itemized deductions for the year. You may find that the standard deduction is a better choice for you.
The tax code is ever-evolving. It is important to stay up to date with the changes as they could have a huge financial impact on your real estate transactions. We always recommend talking to your accountant so you can fully understand how a fast sale of your house in Chicago will affect your taxes for the coming year.
Capital Gains Taxes
Capital gains taxes occur when the homeowner receives a large profit off of the sale of their home. When selling your house in Chicago, $250,000 may be excluded if you are single and $500,000 excluded for married couples who are filing a joint return. As such, you will be taxed on any profits over the exclusion amount. While most people don’t have to worry about these taxes, they could apply, especially if you have lived in the home for a while. The taxes are also based on your income. If you are making less than $39,375, you won’t have to pay a thing! The capital gains rate for income of this amount or less is 0%!
The faster you sell, the lower your property tax obligation will be! Property taxes add up fast and you are responsible for them up until the day of closing. When you work with a real estate agent in Chicago, your house could sit on the market for months, resulting in thousands of dollars in taxes and other holding costs. Not only will you be free of your tax obligation, but you will also save on homeowner’s insurance costs, monthly utility bills, routine maintenance, and costs you would have faced selling your house with a Chicago real estate agent.
How To Sell Your House Fast In Chicago
The best way to ensure your house will be sold quickly is to work with a fair and reputable home buyer such as Chicago Home Buyers. When you work with our team, you will be able to sell your house in only a matter of days and always for a fair price. We will handle all of the repairs, clean-up, and everything else that comes along with selling. We will help you with a fast sale of your house in Chicago or the surrounding areas! Working with us can save thousands, not to mention the money you will be able to save in closing costs. If you are looking for a fast sale of your house in Chicago, this is it! Our process will allow you to sell your house in only a matter of days no matter what condition it is in!