Money Matters: Trimming your tax bill
COLUMBIA, S.C. (WIS) - With an influx in profit for selling property this last year, what advice is there for homeowners?
With such a hot market recently, many have been looking to sell property. Those who have sold in 2022 profited almost 25% more in than the year prior.
While most fall under the thresholds for capital gains exemptions, some high-dollar homes or long-term ownership properties can result in unexpected taxes.
Who qualifies for these exemptions?
There are two criteria homeowners must meet to qualify. The first is that you can prove ownership of the property for two of the past five years. The other qualification is that the home was your primary residence for at least two years combined. If you do not meet these qualifications; however, there are still ways to minimize your bills.
Many homeowners do not realize that they can increase the purchase price of a property simply by adding on the cost of any capital improvements made. This could be renovations or other things you’ve done to increase the value of your home. Keeping documentation of these things over time can reduce capital gains, as well as the chaos leading up to your tax deadline.
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