Can I Deduct the Realtor Fees When I Sell My House?
When filing taxes, you should take any deduction you have a legal right to. When you sell your house, you are entitled to deductions for costs related to selling and moving, including Realtor fees. If you have sold your house during this tax year or are planning to, get your records in order before filing taxes.
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Capital Gains and Selling Your Home
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When you sell your home, you must pay a capital gains tax on the profits. The IRS does, however, allow broad exemptions to this rule. Individuals and married people filing individually can make as much as $250,000 profit on the sale of a home before having to pay taxes. Married couples can double that exemption, allowing for a $500,000 profit on a home before taxes have to be paid.
Realtor Fees
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When figuring your profit, the IRS allows you to deduct Realtor fees and commissions from your profit. As these can be significant on a large sale, a Realtor fee deduction can mean the difference between owing the IRS as much as 15 percent on the sale of your home and nothing at all. The IRS offers a worksheet in Publication 523 to help you figure out how much you have to pay for capital gains on the sale of a home.
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Moving Costs
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Moving costs are another opportunity to get a tax write-off from moving -- one that isn't tied to the profit or loss on your home. If you move more than 50 miles for a job, you can deduct a number of costs related to the move. The IRS further requires you to work there for 39 weeks out of the year. Once you meet these requirements, you can deduct costs such as transportation, lodging and storage.
Other Write-offs
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The IRS allows other write-offs in relation to moving and selling your home. Other deductions that come out of your profit include fees paid to inspectors and all legal fees. In many cases, repairs made to your home to bring it up to snuff for a sale can be deducted from the selling price. This can be anything from planing new flowers in the garden to putting in a new deck.
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