If you’re in the market to sell your home in Knoxville, TN, the final costs of selling your home might keep you up at night. Most home sellers in Tennessee often question how taxes could impact the sale of their homes. As cash homebuyers in Knoxville, we get these questions a lot! When thinking of listing your home, we know that on average the top stressors to home sellers are coordinating your family members in a move, figuring out the closing costs of your home, and knowing your final closing date. Just thinking about the stress a home seller has to take on is intense!
When you’re actively looking to get the best offer on your property, don’t shrug over tax deductions. Since 2020, Tennessee saw massive spikes in home values. It’s highly likely that your home saw a significant property value spike. The more your home increases in value, the more you could save by following these 5 home seller tax tips we’ve listed below.
Selling Your Home in Knoxville, TN? Follow These 5 Tax Tips to Save Money
Deducting Property Taxes
Our state is home to one of the “cheapest” in the nation when it comes to paying property taxes. This is why so many Americans are flocking to live in areas like Knoxville. Did you know that you can deduct thousands of dollars from your property taxes? Before you sell your home, and as you begin to look for your next one, think about deducting the property taxes you pay on your home, and any other residences you own.
Making Deductions On Your Home Renovations Or Repairs
If you’re similar to the many Americans who took on many home renovation projects last year, the good news is that you would be able to write those repairs or renovations off as tax deductions. Why? Since your home repairs would boost the value of your property, you would be able to write those repairs off as deductions when you close on selling your home. Keep in mind, any deductions for this purpose must be made at most 90 days after the close of your home.
Active Duty Military? Deduct Your Expenses Moving into Your New Home
To the brave men and women serving our country, this one’s for you! Not only can you receive tax deductions when selling your home to move due to an assignment or military order, but also for active-duty personnel looking to sell their home and move because of any reason. Look for form 3903 to claim your deductions for travel expenses, food, or even hotel stays when displacements when your home closes faster than your new home.
Selling Costs or Closing Costs
If you’ve lived in your home you’re selling as a primary residence, you would be able to write deductions off of the selling costs of your home, up to a certain percent. This would include escrow fees, Realtor fees, costs to advertise the sale of your home, etc.
Mortgage Interest Tax Deduction
Since 2018, the IRS has granted Americans the ability to deduct the interest of the mortgage of their home (up to $750,000), as a tax break. Look for form 1040 Section A to take full advantage of this tax write-off when selling your home.
There are many other ways home sellers in Knoxville can take full advantage of tax deductions when selling their homes. When the first question that comes to mind is, “How to sell my home in Knoxville, TN”, we seek to provide the home seller with the most equipped arsenal of knowledge on how to get the best possible deal on selling their home quickly, and for the best possible deal. Have questions about any of the information listed here? Don’t hesitate to drop us a message; we’re here to help you!
Need to Sell Your House in Knoxville Fast?
We understand taxes are a necessary evil, and while we aren’t tax professionals, we do have a little bit of knowledge! With that said, if you need to sell a house fast in Knoxville, we would love to help! We are local homebuyers located right here in the Knoxville community. Some folks simply don’t want to deal with the hassles of listing, and that’s why we buy houses in Knoxville! Whether you need advice, need to develop a selling strategy, or need to sell right away, we would love to help!
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