Tax Time | Real Estate Related Deductions

February 1, 2006

We subscribe to Realty Times and every month we have the opportunity to mail or email a monthly newsletter. Normally, we don't find much noteworthy to be broadcasting to our clients, past clients and prospects. Anyone interested in it can view it through the EASY LINKS in the sidebar. This month, there is a particularly timely article about tax deductions provided by home ownership. Specifically, consider this for people who sold a home in 2005:

Top 10 Tax Breaks, On The House

By Broderick Perkins

Selling Costs and Capital Improvements: When you sell your home, you can reduce your taxable capital gain by the amount of your selling costs, which include real estate commissions, title insurance, legal fees, advertising and inspection fees. Cost typically stemming from decorating or repairs -- painting, wallpapering, maintenance, and the like -- are also selling costs if you complete them within 90 days of your sale and with the intention of making the home more saleable.

We are not tax advisors and you should consult with a tax accountant or attorney to determine what might be applicable in your situation. Many of our selling clients spend a considerable amount of money sprucing up the property for the sale. You just might be able to get some of that back!

Read the full article here: Top 10 Tax Breaks.

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