Thinking about selling your house in Milwaukee? 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 Sparks Property Investors LLC to sell your house fast in Milwaukee 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 Milwaukee, there are a numberof 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 Milwaukee will affect your taxes for the coming year.
Capital Gains Taxes
Taxes that occur when the homeowner receives a large profit off of the sale of their home are called capital taxes. When selling your house in Milwaukee, up to $500,000 may be excluded if you are a married couple who is filing a joint return, and even $250,000 may be excluded if you are single. This means that you will be taxed on any profits that go over the exclusion amount. Sure, most people probably don’t have to worry about these bills, but they could apply, especially if you’ve lived in that house for a while. At the same time, taxes are based on your income. If your yearly salary is no greater than $39,375, you won’t need to pay a dime as the capital gains rate for this income or less is 0%!
The rule is simple. The faster you sell, the lower your property tax obligation will be! Property taxes can add up pretty fast and until the day of closing you are the person responsible for them. Often times, if you work with a real estate agent in Milwaukee, your property could sit on the market for months, which will only result in hundreds, if not even thousands of dollars just in taxes. And let’s not forget about other holding costs. However, if you opt working with a home buyer company, 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 Milwaukee real estate agent.
How To Sell Your House Fast In Milwaukee
The most recommended way to make sure your house will be sold quickly is to work with a reputable and fair home buyer such as Sparks Property Investors LLC. 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 Milwaukee 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 Milwaukee, 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!