What Can I Write Off

When selling your home in Carolina Colours, it’s important to understand the tax implications and potential write-offs that could save you money. Many home sellers are unaware of the tax deductions available during a sale. By knowing what expenses are deductible, you can make your home-selling journey even more rewarding.

Here’s a breakdown of some common expenses you may be able to write off when selling your Carolina Colours home:

1. Real Estate Agent Commissions

The real estate agent commission is typically one of the largest expenses associated with selling a home. Good news: this expense is usually deductible as a selling cost. Whether you’re downsizing within Carolina Colours or relocating to another state, the commission fees paid to your real estate agent can reduce your taxable income from the sale of your home.

2. Home Improvements and Repairs

If you made any improvements to increase the value of your home before listing it for sale, such as remodeling the kitchen or upgrading the landscaping, these expenses could be considered part of the sale price. This could potentially reduce the capital gains tax on the sale.

Similarly, repairs made specifically to prepare the house for sale, like fixing plumbing issues or repairing a leaky roof, may also be written off as part of the selling expenses. However, it’s essential to keep receipts and detailed records of all improvements and repairs.

3. Closing Costs

Many of the closing costs associated with selling your home are deductible. These might include:

• Title insurance

• Attorney fees (if applicable)

• Transfer taxes (where applicable)

• Recording fees

By understanding the fees involved and keeping track of them, you can ensure they’re factored into your tax deductions.

4. Mortgage Prepayment Penalties

If you pay off your mortgage early and incur a prepayment penalty, that fee may also be deductible. While this cost can seem discouraging at first, it’s important to know that you could be able to recover some of it when you file your taxes.

5. Property Taxes

For homeowners who sell their property during the tax year, property taxes are typically prorated. You may be eligible to deduct any property taxes that have already been paid or any that you paid for the buyer’s portion of the year. Be sure to check your local rules, as different states and municipalities may handle property tax deductions differently.

Ready to Sell for Top Dollar? Let’s Get Started!

The selling process can feel like a lot to handle, but with the right agent by your side, you’ll have expert guidance every step of the way. Whether you’re downsizing within Carolina Colours or relocating to another state, I can help you sell your home for top dollar—and maximize the tax benefits in the process.