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Westfield Home Sale Tax Deductions

By Scott Gleason, CRS

Real Estate Agent with Coldwell Banker Realty NJ# 9483506

April 06, 2018 04:00 AM

The deadline to file your income taxes in 2018 is April 17th. Did you sell a home in 2017? You might be able to take advantage of certain Westfield home sale tax deductions when filing this year. If you haven't filed yet, it's not too late to discuss these with your tax attorney or accountant.

Westfield Home Sale Tax Deductions

Mortgage Interest and Property Taxes

Two of the Westfield home sale tax deductions you can take advantage of right now are mortgage interest and property taxes. Anything you paid for either one of these in 2017 can be deducted on your taxes. The new tax code caps mortgage interest at anything paid up for up to $750,000 in mortgage debt and $10,000 in property taxes. However, the old limits (interest paid on up to $1,000,000 in mortgage debt and unlimited for property taxes) still apply for 2017 tax filings. Did you prepay your 2018 property taxes last year? You could add this to the property tax deductions for 2017, but only if your property was assessed in 2017 as well. Otherwise, your 2018 property taxes fall under the new tax code rules.

Home Repair/Improvement

Did you make any repairs or improvements to your home before selling it? Any money you paid to do so could be another one of your Westfield home sale tax deductions. These costs include anything you did to improve the marketability of your home, including new appliances, paint, roof repairs/replacement, etc. However, these repairs need to have taken place within 90 days of your home's final close to be eligible for the deduction. If they were done outside of that time frame, they cannot be deducted.

Moving Expenses

Did a job change force you to sell your Westfield home last year? Then, your moving costs could be tax deductible. Whether you used a professional moving company or went the DIY route, you might be able to deduct these expenses on your tax return. Unfortunately, beginning in 2018, this deduction will no longer apply unless you're an active member of the military.

Costs Related to the Sale of Your Home

Finally, any costs associated with the actual sale of your Westfield home are tax deductible. These include escrow fees, staging costs, advertising costs, legal fees, and agent commissions.

I am not a licensed CPA or tax expert of any kind. I only wanted to provide this information as a point of reference. Always talk to your accountant or tax attorney before taking any deductions on your taxes. No matter who prepares your returns, you are ultimately responsible for what gets filed under your name. Discuss these options with a professional first.