I am a real estate agent and am not qualified to offer tax advice. But of course, as a California Realtor, there are certain general things I should be aware of. When it’s time to sell your home, you certainly want to take advantage of your homeowner’s exemption. It is $250,000 or $500,000 for a couple. I am frequently asked about determining your tax basis.
Every primary residence or rental property has a “Basis”. Subtract the Basis from your Sales Price at the time of sale to calculate your profit. Then deduct your Selling Costs. Generally, for a primary residence, your basis consists of the initial price you paid for the home plus any improvements made. Please contact your accountant for specific information about determining your tax basis.
Rental basis is similar, except you subtract any depreciation taken. For tax information tailored to your situation, consult an accountant specializing in real estate. If you are thinking of selling and are curious about which fix-its pay off, call me at (818) 790-7325.
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