Death of a Spouse and Selling Your Home

 

Selling your home after the passing of a Spouse can be Tricky

According to IRS Publication 523, when your spouse passes away, you are entitled to utilize their $250,000 capital gains exemption in addition to your own $250,000 one-time exemption for up to 2 years from the date of your spouse’s passing.  However, if you sell more than 2 years after the death of your spouse, you are only entitled to use your own $250,000 one-time exemption on capital gains tax.  If your home equity is likely to exceed $250,000 this could affect you dramatically.

Here’s a good place to start.  The first number you need is how much you paid for your home when you bought it.  The second number you will need is a total of all of the monies you paid for capital improvements on your property (i.e.: pools, new roofs, new furnaces, and other improvements).  Hopefully, you have a file with all of these receipts you have saved over the period you have owned your home.  The last number you will need is an idea of what your home is worth in today’s market and a “net sheet” indicating how much you will likely have in your pocket from a sale.  These last items are ones that we are happy to help with.  If you need to find out the potential market value of your home please fill the request out and we will reply.

Please check with your accountant to verify the current tax regulations.

The Latest 2024 Housing Market Forecast – Utah Realty

The Latest 2024 Housing Market Forecast – Utah Realty

The Latest 2024 Housing Market Forecast The new year is right around the corner, and you might be wondering if 2024 will be the right time to buy or sell a home. If you want to make the most informed decision possible, it’s important to know what the experts have to...

Reasons To Sell Your House Before the New Year

Reasons To Sell Your House Before the New Year

Reasons To Sell Your House Before the New Year As the year winds down, you may have decided it's time to make a move and put your house on the market. But should you sell now or wait until January? While it may be tempting to hold off until after the holidays, here...

A Real Estate Agent Helps Take the Fear Out of the Market

A Real Estate Agent Helps Take the Fear Out of the Market

A Real Estate Agent Helps Take the Fear Out of the Market Do negative headlines and talk on social media have you feeling worried about the housing market? Maybe you’ve even seen or heard something lately that scares you and makes you wonder if you should...

8 Great Quotes

8 Great Quotes

Buy or Sell with Marty Gale "Its The Experience" Principal Broker and Owner of Utah Realty™ Licensed Since 1986 CERTIFIED LUXURY...

7 Things Homebuyers Should Know Right Now

7 Things Homebuyers Should Know Right Now

7 Things Homebuyers Should Know Right Now Navigating The Home Loan Process Amid Today's Sky-high Mortgage Rates Is Extremely Complicated—particularly For First-time Homebuyers. With mortgage rates soaring to unprecedented heights, it's crucial for homebuyers to...

Why Home Prices Keep Going Up

Why Home Prices Keep Going Up

Why Home Prices Keep Going Up If you've ever dreamed of buying your own place, or selling your current house to upgrade, you're no stranger to the rollercoaster of emotions changing home prices can stir up. It's a tale of financial goals, doubts, and a dash of anxiety...

Home Price Growth Is Returning to Normal

Home Price Growth Is Returning to Normal

Home Price Growth Is Returning to Normal Some Highlights If you're wondering what’s happening with home prices, know they’re still rising, just at a slower pace – and that’s perfectly normal for this time of year. Based on typical seasonality in the market, prices go...

Click here for Home Value Report

Pin It on Pinterest

Share This