Tax Tips When Selling House In Lynchburg

Tax Tips For Selling Your Lynchburg House

Tax Tips When Selling House In Lynchburg

Selling your Lynchburg house? Taxes got you stressed?

We get it. Selling a house is stressful enough without the added worry of taxes. You’re probably thinking, “I just want to get this house sold and move on.” Trust us, we understand. Dealing with numbers and deadlines can feel like trying to solve a complex puzzle.

But don’t panic. Let’s break down the tax side of selling your Lynchburg home into easy-to-understand bites. We’ll walk you through the process, step-by-step, so you can focus on what really matters: getting your house sold.

Ready for some Tax Tips When Selling House In Lynchburg ? Let’s dive in.

For specific questions, contact a trusted tax professional, or the IRS! 

Not All Profits Are Taxable

You will be able to exclude a high portion of your profits when selling your home in Lynchburg, so long as certain conditions are met. Typically, you will be able to exclude $250,000 from your tax return, and up to $500,000 if filing a joint return. (However, if you sell for a loss, you won’t be able to take a deduction for that amount.)

The deduction is only available when selling your primary residence, and can only be used once every two years. To qualify for the deduction, you must have lived in the residence for at least two of the past five years.

It is important that whenever you move, your address is updated with the IRS.

Other Exclusions

If you do not meet the requirements above, you might still be able to exclude a portion of your profits when selling your home in Lynchburg from your income tax. There are many special conditions you can meet in order to receive a prorated, tax-free gain. If you need to sell because of a change in your health, a job change or other unforeseen circumstances, you should be able to write-off a portion of the profit from selling your home in Lynchburg.

Reporting the Sale

You will need to report the sale if you receive a 1099-S form from the closing agent. This form provides the IRS with information regarding the proceeds from real estate transactions. To avoid reporting, make sure that you are able to exclude all profits. Let the agent know at the time of closing that the form will not need to be issued. Even if you are able to deduct all profits, if the form is issued, you will still need to file it with the IRS… even if no money is owed.

Capital Gains Taxes

If you are selling an investment property or house you have only owned briefly, you will likely be subject to the capital gains tax. Capital Gains taxes are dependent on how much you make. If you have a lower income, you will pay no capital gains taxes. People in higher tax brackets can pay upwards of 20%. Short-term assets are typically taxed the same as ordinary income.

First-Time Homebuyer Credit

Depending on the dates you bought and sold, you might have to pay back all or part of the credit you received. Typically if you move within 36 months of purchasing the home, the credit must be paid back upon the sale of the home. Special rules apply and can be found in Publication 523 from the IRS.

Deduct Selling Costs

When selling your Lynchburg VA house, you may be able to deduct any reasonable cost when selling your home. This includes the closing costs, improvements made in order to sell the house, assessments, marketing costs, agent fees and so on. Keep track of every cent you spend in an effort to sell your Lynchburg VA home. Come tax time, this can amount to major deductions!

No matter what time of the year you sell, it is always important to seek the counsel of professionals. Consult your agent, accountant, and attorney to make sure you have set up the best terms for yourself.

Don’t stress too much about taxes when selling your Lynchburg VA house. Odds are Uncle Sam won’t be getting his hands on too much of your profits.

Do you want to sell your house in Lynchburg VA? We can help! Send us a message or give our office a call today! 434-390-2906

How Linken Investments Simplifies the Home Selling Process

Initial Property Assessment
Once you contact Linken Investments, we will schedule a visit to assess your property. During this visit, we will evaluate its condition and determine a fair offer based on market factors and the extent of repairs needed.

Cash Offer and Negotiation
After the assessment, we will present you with a cash offer. You have the freedom to negotiate and discuss any concerns or questions you may have. If you accept the offer, we will proceed with the closing process.

Quick Closing
Unlike traditional home sales, where the closing process can take months, we can close the deal quickly. We will guarantee a closing date that works best for you. This speeds up the selling process, allowing you to move on with your plans and get the money from the sale in your hands sooner.

Minimal Paperwork
Working with Linken Investments involves minimal paperwork compared to traditional real estate transactions. We’ll ensure a smooth and efficient transaction, reducing your burden and making the process of selling your home as simple as possible for you.

Linken Investments, Lynchburg’s Trusted Home Buyer and Seller

Linken Investments LLC. is a local real estate solutions company based out of Lynchburg, VA. We are Lynchburg’s Trusted Cash Home Buyers. We have been buying houses for cash in the Lynchburg area since 2005. We are also Licensed Realtors in the state of Virginia. Since we are a real estate investment company as well as a licensed and reputable real estate agent, we have multiple ways we can work with you to sell your Lynchburg area home on your schedule and for the highest price. We provide you a way to see all of your options in one spot… letting you choose whether you want to maximize the price of your sale by listing on the Lynchburg MLS or whether selling fast and simply is more important to you.

Our years of experience are one reason clients trust Linken Investments to complete the sale of their Lynchburg area property quickly with honesty and integrity. We’re a family-owned business and focus on helping homeowners like you find solutions to your problem whether you’re going through a foreclosure, selling an inherited property, or just need to sell your house fast for any reason. Linken Investments offers you the chance to sell your home in a simple, stress-free, cash transaction, or you can list the house with us. We’ll sell your Lynchburg area house at the highest possible price with our wide buyer network and the best marketing in Virginia.

Linken Investments can buy your home exactly as it is, no repairs or cleaning needed, and we pay all cash and close fast, in as little as 7 days or when it works best for you. Think of all the time and money that can save you. There’s no easier or quicker way to sell your Lynchburg house fast and get on with the next chapter in your life.

It won’t cost you any money and only about an hour of your time to find out how much cash we’ll pay you for your house. And you’ll be under no obligation to accept our offer, so you have nothing to lose but a house that’s standing between you and the life you want to enjoy.

Give us a call or text anytime 434-390-2906 or fill out the short form here today!

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