Introduction
1. Preparing to sell a residence
When selling a residence, one has to do some preparations, such as check the front door and all windows, update the interior, renovate a kitchen and a bath (if needed), check walls and floors, check all electrical fixtures, etc.
2. Pros and cons of hiring a real estate agent
There are both advantages and disadvantages of hiring a real estate agent to sell a residence. Possible pros include saving time and energy, avoidance of paperwork, having an expert estimate the price of the residence, no need to coordinate possible reparations, having an expert to conduct negotiations. Possible cons are commissions, having one or two intermediaries in the deal, having to negotiate your schedule with an agent, etc.
3. Capital gain from selling a residence and qualifying for exclusion
If one is selling a residence, he or she will have to pay a capital gain tax of the sale of the residence. Also, there is a possibility that a person may qualify for the exclusion of the gain from the income. Thus, the person who sells a residence should check all information before selling.
4. Selling a residence and paying off the mortgage
A person can sell his/her residence and use the money to pay off the mortgage, but it is important to figure the taxable amount. Thus, a person may need to consult someone and get more information about the proceeds from the sale of a residence.
5. Reporting the sale of a residence
Even if the gain can be excluded, a person must report a sale of the residence. The person will need to use various forms, such as Capital Gains and Losses, forms 1040 and 8949 to report the sale.
6. Basic residence selling mistakes
Many people make mistakes when selling their residences. Some of these mistakes can be very costly, so it is highly recommended to check the list of possible mistakes to avoid them in future.
Conclusion
Works Cited
