IRS Archives - Deeds.com

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.

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.)

Tag: IRS

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

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