Talking Tax Deductions

We are right smack dab in the middle of tax filing season. Perhaps you haven’t filed yet ahead of the traditional April 15th deadline. Did you know there are tax deductions you can take if you sold a home this year? It’s true! Read on to find what you can still claim for the 2022 tax season. 

Selling Costs 

Selling costs are included in items you can deduct so long as you (and the expenses) meet certain criteria. Namely, the costs have to come directly from the sale of the home, and you must have lived in the home for two out of the last 5 years. More specifically, the home is required to have been a primary residence and not an investment property. What costs exactly qualify? Think: legal fees, escrow fees, advertising costs, and the commission paid to your realtor. 

Property Taxes

This one is more commonly known, but if you’ve always been diligent about paying your property taxes, those are deductible as well up to the point of sale. There is a cap, though. Property tax deductions are capped at $10,000.

Mortgage Interest

Like property taxes, interest paid on your mortgage loan itself is also a deduction. Of course it’s only a deduction for the portion of the year that you owned the home. New tax code was implemented for 2022 so be sure to talk to a tax professional with any questions. 

Be sure to visit Realtor.com for more ideas on what renovation and capital gains taxes are eligible for deductions.