Tax Questions

[CL86]

1) any tax deductions for homeowners looking to sell their homes?

2) transferring funds from one savings to another savings account -both accounts are mine, will there be any tax implications I need to be aware of?

3) is it more beneficial to file taxes jointly as a married couple?

4) if homeowners do repairs on their own homes to sell, are there any tax deductions?

5) is rent tax deductible?

6) are there any tax deductions for homebuyers?

[Cindy4]

Hi @CL86 !

These are all great questions!

1)  You can typically exclude gains on the sale of your home up to $500,000 for married filing jointly.  There are some limitations involved, such as you had to have used it as your personal residence for two years.

Here is a great resource for this topic:  https://turbotax.intuit.com/tax-tips/home-ownership/tax-aspects-of-home-ownership-selling-a-home/L6t...

2)  There are not tax implications when transferring money from one savings account to another.  You do need to report any interest earned.

3)  It's typically more beneficial to file jointly when married, but there are exceptions.  This article covers some information on that topic:

https://turbotax.intuit.com/tax-tips/marriage/should-you-and-your-spouse-file-taxes-jointly-or-separ...

4)  Repairs and improvements to your home can add to the basis when selling.  This will reduce the potential capital gain.   Some of this is covered in the above article link.  There are also energy credits available.  Here is a great link to some information on that:

https://turbotax.intuit.com/tax-tips/home-ownership/energy-tax-credit-which-home-improvements-qualif...

5)  Rent is deductible in some states, but not for federal tax, unless it is business related.

6)  Homebuyers can deduct mortgage interest and property tax paid.

Hope this helps!

Cindy