- Owner's title insurance. An owner's title insurance policy protects you against prior ownership claims on the property.
- Property taxes.
- Title fees or abstract fees.
- Legal and recording fees.
- Survey fees.
- Utility installation charges.
- Transfer or stamp taxes.
What expenses can I offset against capital gains tax?
- Estate agents's commission - where there is a property sale.
- Legal costs.
- Costs of transfer - e.g. stamp duty land tax.
What is the federal exemption for the sale of a home?
You can sell your primary residence and avoid paying capital gains taxes on the first $250,000 of your profits if your tax-filing status is single, and up to $500,000 if married and filing jointly. The exemption is only available once every two years.
Are staging costs tax deductible?
The costs of staging are subtracted from the proceeds of the sale of the home and decrease the total realized profit. In summary, the IRS's position is that Staging costs are a legitimate selling expense for both primary and secondary homes and are therefore tax deductible.
Are escrow fees tax deductible?
Many monthly house payments include an amount placed in escrow (put in the care of a third party) for real estate taxes. You may not be able to deduct the total you pay into the escrow account. You can deduct only the real estate taxes that the lender actually paid from escrow to the taxing authority.
Is money from the sale of a house considered income?
It depends on how long you owned and lived in the home before the sale and how much profit you made. If you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free. If you are married and file a joint return, the tax-free amount doubles to $500,000.