If you haven’t bought or sold a home in several years, you have likely heard some myths and half-truths about the real estate market and home-selling process. When relocating to Colorado, you can separate fact from fiction as well as get a grasp on how much homes in Colorado should cost in the current housing market. According to a recent article by usatoday.com, most people in the United States buy and sell a home every eight years. It is easy to fall prey to misguided information from friends, family or other sources. Not all home-selling trends apply to Colorado or your personal situation.
Do I owe taxes if I don’t buy another home?
Some people think they need to buy another home with the money they make from their home purchase or owe the IRS taxes. In reality, you don’t owe taxes if you lived in your home for at least two of the last five years. In most cases, you can get a tax exemption of about a half a million for a married couple.
Do I have to pay surtax for Obamacare?
Another home-selling myth circulating is that you owe an extra 3.8 percent surtax to help fund Obamacare. In rare cases, a home sellers does owe a surtax. However, the tax could be used for people who don’t live in their homes for two of the last five years or who made more from the home sale than the exempted amount. In addition to working with a real estate professional, it is important to discuss tax issues with your accountant. Other important tax questions and misconceptions include the issue of writing off income loss from the sale of your Colorado home. Some tax issues relate specifically to investment real estate properties but not for owner-occupied homes.
The Principal Team works hard to help our clients find perfect homes for their upscale lifestyle. We are a full-service real estate brokerage company helping people relocating to Colorado as well as those moving from one hip neighborhood to another. For more information on high-end corporate relocations, please contact us.