maybe. if you itemized in prior years and that included interest and taxes you'll may have a smaller or larger deduction in 2023 so the standard deduction could be more tax efficient. don't know if your state has a personal income tax and they allow the same home sale exclusion as the federal or if nay credits or deductions will be lost because you now rent.
There is not a rent deduction or credit on your Federal return. If your state has anything for renters you will be prompted to enter your rent info when you complete your state return. As far as I know, the states that have anything for rent are Arizona, California, Connecticut, Hawaii, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, Rhode Island, Vermont, Washington DC, and Wisconsin.
You won't be able to deduct mortgage interest (if you did). You won't be able to deduct property taxes (if you did).
If you got a 1099-S at the closing, you have to report the sale even if no capital gains tax will be owed.
If you ever used the home in business (such as a home office or rental) then some of your gain is taxable due to depreciation recapture, even if your gain is less than the $250,000 personal exclusion.
No other impact I can think of.
Still have questions?Make a post