Is there a tax disadvantage selling your home at the end of the year?

Forum|Forum|2 years ago
November 10, 2023
3 replies
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Best answer by VolvoGirl

Expert Reviewed

It might make a different between by the end of this year 2023 and at the beginning of next year 2024. Depends on your overall tax situation. It may not be taxable.

Is this your primary house?

For a primary home, if you owned and lived in your house for 2 out of the last 5 years when you sell you can exclude the gain up to $250,000 for single or 500,000 for married from tax. You can not take a loss on your tax return. If you made more than a 250,000 (500,000 for joint) gain then the amount over it is taxed. Doesn't matter what you did with the proceeds like buy another house or pay off the mortgage

IRS pub 523 house sale. Figuring Gain or Loss on page 8.

http://www.irs.gov/pub/irs-pdf/p523.pdf

Bsch4477

Level 15

Timing of a sale is influenced by your financial situation like capital gains or losses and your other income.

NCperson

Level 15

@Billie73 I can't think of a reason that it is to your disadvantage to sell at the end of the year as a tax reason.

Normally, taxes are the "tail to the dog" - in other words making the decision solely on taxes isn't normally the best approach.

There could be market reasons not to sell at the end of the year - not as many people are looking, which could depress the price you accept.

VolvoGirlAnswer

Level 15

Expert Reviewed

It might make a different between by the end of this year 2023 and at the beginning of next year 2024. Depends on your overall tax situation. It may not be taxable.

Is this your primary house?

IRS pub 523 house sale. Figuring Gain or Loss on page 8.

http://www.irs.gov/pub/irs-pdf/p523.pdf