Do you know about the tax benefits to homeownership? We’re talking about two of the most common today.
Selling your Minneapolis home? Check out our free home value report
Buying a Minneapolis home? Search all homes for sale
Before we start, let me just say that I’m not an accountant or tax attorney and you should always consult those people before making a final decision on real estate sales or purchases. However, there are certain tax benefits to owning real estate that you can take advantage of if you decide to take the leap.
Right now in 2019, a homeowner who is selling a house is allowed to take $250,000 from that sale to buy a new home without having to pay taxes on it. For married couples, it’s $500,000. If a home was purchased a few years ago for $300,000 and then sold for $800,000 at a later date, you have $500,000 in gross proceeds that you can use as a down payment on your next house without having to give the government a cut.
For investment properties, a 1031 exchange is also a great tax tool. It allows you to defer your taxes to your next investment property. You will have to pay taxes when you sell the property, but you can also leverage your investment to get something that can make you more money in the future without having to pay taxes on it again. There are plenty of accountants we know who are experienced in this and can help out if you need it.
“
”
A 1031 exchange allows you to leverage your investment.
”
If you want to build wealth in real estate, these are two very important things to know about. If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.
