Hi. We're selling our house in MN and buying another in GA. We can close on our house in MN in either Dec or Jan. Are there tax advantages to closing in 2022?

[BobCee226]

Hi. We're selling our house in MN and buying another in GA. We can close on our house in MN in either Dec or Jan. Are there tax advantages to closing in 2022?
Moving expenses, movers, packing material will all fall in Jan 2023.  So I don't know what is best.

[DoninGA]

There are no tax advantages on selling your home in 2022 versus selling in 2023.  So the choice is yours.

Moving expenses are not reported on a federal tax return unless you are active military on Permanent Change of Station orders due to the tax code changes in effect for tax years 2018 thru 2025.

If you sold your primary personal residence and you lived in and owned the home for at least two years in the five year period on the date of sale, you do not have to report the sale if your gains are less then the exclusion amounts of $250,000 if filing Single or $500,000 if filing Married Filing Jointly (and both lived in the home for two years).

If you had a gain greater then the exclusion amounts then you would have to report the sale. Also, if you received a Form 1099-S for the sale either with a gain or a loss, the sale has to be reported.

[Mike9241]

there could be an advantage to selling in 23 vs 22 but that would only be if your gain exceeds the home sale exclusion.  if It does, then you avoid having to pay the taxes by 4/15/2023. however, a lot depends on your personal tax situation overall for the two years.  we don't know enough o give you an answer one way or another.  if you have a taxable gain consulting a tax advisor might be warranted.  

[BobCee226]

Thank you for your help in this.  It was very much appreciated.