Do real estate agents fees get deducted before any capital gains liability on home sale?

Question

We believe we are liable for taxes on the sale of our main home as it has risen more than the $500k allowance for a married couple (see earlier question). Can we deduct real estate agent fees before calculating the capital gains tax liability?

Answer 1

Yes, they are. So are a lot of other things. Basically, your "gain" is your selling price, minus your purchase price minus upgrades and improvements, minus purchase fees, minus selling fees...basically minus anything that you weren't able to claim against your taxes like mortgage interest and RE taxes.

But, please, don't take my word for it. Everything you ever wanted to know about selling your house is at the IRS link attached.

Congrats big time on having such a nice gain!

Answer 2

You can deduct the settlement costs from both the purchase AND sale of your old home, plus the cost of any capital improvements you made to your home over the years. Go to the IRS website and do a search for "Sale of Home" - the instructions should be there, as well as the rules for treating the exclusion when it's over the limit. I would suggest you consult with a licensed accountant this year.

Answer 3

There are some actual materials companies which will sell your place for a flat cost, yet they are complicated to locate. maximum of them are the "on the industry via proprietor" web content which you pronounced. maximum stable actual materials companies in basic terms paintings on cost. i'm uncertain what type of stories you have had with actual materials brokers interior the previous, yet they do alot greater desirable than in basic terms checklist your materials on MLS. there is alot of time spent promotion and merchandising your place and if it does not sell your agent isn't paid so all their time and attempt is going unpaid. perhaps you would be maximum suitable to in basic terms ask around from acquaintances and relatives to get some suggestion on some stable brokers on your section. Attending open homes is yet another stable thank you to fulfill brokers and additionally you get to verify what form of attempt they positioned into promotion the domicile.