Real Estate News

6 Tax Facts Every Home Owner Should Know

July 24, 2013 in How to, Real Estate News, Uncategorized - Leave a Comment
6 Tax Facts Every Home Owner Should Know

6 Tax Facts from the IRS

Most home owners are well aware of the tax advantages of home ownership. But, make sure you know the rules before selling your home. Here are 6 facts published by the IRS you should keep in mind:

  1. If you’ve owned and lived in your home for two of the five years prior to selling it, you can generally exclude up to $250,000 of capital gains ($500,000 on a joint return in most cases).
  2. You are not eligible for this exclusion if you sold another principal residence within the past two years and excluded the allowable gain from your income.
  3. If you can exclude ALL of the gain from the sale of your primary residence, you don’t need to report the sale on your tax return.
  4. If you have a gain on your principal residence that exceeds the allowable deduction, it is taxable.
  5. You can’t deduct a loss from the sale of your primary residence.
  6. Special rules may apply when you sell a home for which you’ve received the first-time home buyer credit. (See IRS publication 523, “Selling Your Home,”  for details.)

Can a Property Taxe Base Transfer Help You?

If you are interested in selling your current home and buying another one, you should explore if you can take advantage of a Property Tax Base Transfer (especially if you are 55 years or age or older or if you are permanently disabled) The property tax base transfer is an option where by your County may allow you to sell your home and then purchase another home (subject to purchase price limits and limited to the homes being located in participating Counties) and transfer your existing property tax base. This could be a significant savings you can take advantage of.

Is now the right time for you to sell? Property values in Castro Valley are on the rise. Take a look at our latest Neighborhood Sales Report for more information.

Feel free to contact us today. We would be happy to explore your options and answer any questions for you.

Castro Valley: What has your home done for you lately?

July 17, 2013 in Real Estate News, Uncategorized - 2 Comments
Castro Valley: What has your home done for you lately?

Looking at recent sales data, it is clear that home values in Castro Valley are on the rise for the first time in years.  The median sale price during the second quarter of this year was $593,423, an increase of over 11% from the median price of $534, 900 just 3 months earlier. If we look at the last 12 months, the median sale price is up 27%. While gains like these are outstanding, they are even more impressive when you consider that most of the gain may be tax free if you lived in that home as your main residence for 2 of the last 5 years!

Even if you are not considering a move right now, knowing your home’s current value is still important. If you’re like most people, the home you live in is the largest asset you have. The fact that it is also the place where you and your family spend most of your time makes it even more important to know its worth. There are several reasons why you should keep up-to-date on your home’s value:

  • Refinance: Reduce your monthly expenses by refinancing your loan.
  • HELOC: Use a Home Equity Line of Credit to finance desired upgrades.
  • Peace of mind: Know exactly where you stand financially.

A proper valuation arms you with information on your home and your financial position. Feel free to contact us with any questions.

*Home prices based on information from Bay East Association of Realtors