Is there a bigger tax benefit to selling a home at the beginning or at the end of the year?

Answer by  slkunz2003yahoocom (836)

If you plan on using the mortgage interest paid as an itemized deduction, then at the end of the year. However, if you must consider capital gains or loss too.

Answer by  blahblah (670)

Generally, it doesn't matter when you sell your house. However, to qualify for the capital gains exclusion of $500,000 (or $250,000 if you're single or filing separately), you must have lived in the house for two of the last five years. So if you've owned your home a short time, you should delay the sale to get the exclusion.

Answer by  frank (279)

The tax benefit would depend if their is a profit or loss If you made a large profit on the house and did not buy another house then you would be taxed on the profit. Thus selling a profitable house in Jan would be more beneficial as you have a longer time NOT to pay the tax.

Answer by  Sam65 (198)

Your taxes are determined on an annual basis, so it does not matter when in the year you sold or did something. However, you can plan when you will recieve your benefit. If you will pay taxes on the sale, you may wait until Jan., otherwise a refund would be closer if you sold in Dec.

Answer by  olive49 (424)

There is no tax benefit for when you sell your home. However, if you are making mortgage payments, the interest paid during the year are considered tax deductible. So if you are selling and will be renting then it may be better to wait until the end of the year to get the biggest benefit from interest payments.

Answer by  tamarawilhite (17883)

There is no difference in the capital gains rate based on the time of year you sell. The home buyer tax credit, however, expires in a few weeks.

Answer by  trdimc2009yahoocom (171)

Selling your home does have benefits. Concerning taxes, there are many rules, regulations, and changing seasons. Contact an attorney to find out the most recent laws for your state and explain your situation. With education, research, and planning you may be able to reap many benefits of selling your home as many times as you like

Answer by  jsmith (2067)

Outside of any specific tax incentive programs that are expiring sometime during the middle of the year (these tend to be for buying, not really selling, so they should only be considered if you are going to be buying a new home as well) there is no difference in terms of your tax benefit. The entire year is equivalent.