Open Floor Plan Homes- Should your new home be open floor plan? An Honest Review
Open floor plan living in all the rage. Is it for you? Here's what Daniel thought of his open floor plan home.Read More
Author: Terry, CPA @ Kabinet
Your home has one of the most far-reaching tax benefits in the entire Internal Revenue Code.
A gain on the sale of your personal residence for a single individual is excluded up to $ 250,000 and $500,000 for a married couple.
This means that these amounts are 100% NON-taxable. All that profit accrues to the home owner free and clear. It is an amazing benefit of home ownership.
The home must be used 2 out of past 5 years to qualify, although the 2-year rule can be prorated.
There are other quirks that will not affect the vast majority of taxpayers and as always, feel free to contact me for more information and I will help you.
Kabinet is truly a platform that this law was made for. You must track all expenses from the original purchase of the property as most closing costs go towards increasing the basis (cost) for tax purposes.
All major improvements to the property also go towards increasing the cost, thus qualifying to decrease the gain and staying within the full limits for non-taxability. Kabinet allows you to document those costs and allows you to have receipts at your finger tips should you have need to prove your costs to the Internal revenue Service.
Kabinet allows you to seamlessly and easily claim this potentially $ 250,000 or $500,000 savings at a cost of $49.99. To not have Kabinet as a home owner is crazy!