Capital Gains Tax Archives

April 29, 2024April 30, 2024

I Inherited a Home. Should I Sell It, or Rent It Out?

Many heirs receive real estate because it’s a valuable asset — not necessarily because they need the homes to live in. So, for the heir who doesn’t want to live in the inherited home, what’s the best decision to make? Rent or sell the home?

The answer is clear: It all depends! It’ll turn on the precise blend of the heir’s circumstances and the real estate market.

While we have no blanket best answer for all readers and all markets, we can certainly go over the factors an heir would want to consider.

April 8, 2024April 25, 2024

Reporting a Home Sale? What to Know About Capital Gains Tax (Even If You’re Exempt)

Hopeful buyers have struggled on and on with real estate price surges. Those who have managed to break into this market have watched their home values surge, too.

When these homeowners decide to sell, the profits they accumulated in their homes are known to the Internal Revenue Service (IRS) as capital gains.

People who sold their homes in 2023 have received Form 1099-S from their brokers. They’re ready to file it, to declare proceeds from the sale of a home. Most of these sellers will be glad to know they’ll get to keep their gains.

Here, we take a look at what home sellers should know — even if their profits won’t be taxed.

January 15, 2024April 25, 2024

Capital Gains: Were Profits on Your 2023 Home Sale EXEMPT? Head Form 1099-S Off at the Pass.

People who sold their homes in 2023, after living in them for a while and enjoying their low mortgage rates, have seen big gains in their property values. Fortunately, most of these gains won’t be taxed.

If you sold a home in 2023, your lender or broker may give you Form 1099-S. Federal law requires the party responsible for closing your deal (this could be an escrow agent or title company) to send these forms out, filled in with the closing date and proceeds of the sale.

Form 1099-S only needs to be sent to sellers who have taxable gains to report on their 2023 returns. Read on to find out why most home sellers won’t have to report their home sale to the IRS! (You still may choose to report the sale on your return, even if not required.)

November 7, 2022April 25, 2024

Using a Quitclaim Deed: What Are the Drawbacks?

A quitclaim deed is a simple form that transfers a piece of real estate from one person to another. Any homeowner can fill out a quitclaim deed with their name and the name of the recipient, and the property’s existing legal description, sign it in front of a notary and record the document. That effectively and quickly passes a property on. No wonder these forms mistakenly get called “quick claim” deeds.

Yet quitclaims are not a good pick for most property conveyances. Read on to learn more.

September 5, 2022April 25, 2024

Can a Quitclaim Deed Be Undone?

A quitclaim deed transfers real estate to a new owner. A properly completed and recorded quitclaim cannot be undone. Here’s why — and what to do next if there’s a problem with the transfer.