Tinna Real Estate Information: How to save taxes when buying a house

Tinna Real Estate Information: How to save taxes when buying a house. How to declare taxes on money earned from selling a house? When should real estate be passed on to children? How to pay less when donating real estate to your children...

Tinna Real Estate Information: How to save taxes most when buying a house. How to declare taxes on the money earned from selling a house? When should real estate be passed on to children? How to pay less tax when gifting property to children? The above questions are doubts of many families. In this issue, we will analyze with you the tips for saving taxes when selling a house. When selling a house, all the interior and exterior decoration costs of the house during the period of residence can be calculated into the cost of the house, so be sure to keep all receipts for house decoration and renovation together with the house purchase contract. When the house is sold, it can be used as the cost of the house to deduct part of the tax. When is the best time to pass the house to your children? This involves gift tax and inheritance tax. When parents inherit a house to their children while their parents are still alive, they must pay gift tax. The gift tax is calculated based on the purchase price of the house in that year as the cost. When parents pass away and inherit the house to their children, the house is passed on to the children through inheritance, and inheritance tax is payable. At this time, the cost of the house is based on the market price at the time of inheritance, so you can choose an inheritance method based on comparison to achieve the effect of tax saving. In addition, reasonable use of some tax provisions can also save taxes. Using the terms of like-kind asset exchange, the so-called like-kind asset exchange means that if the money you receive from selling an investment house is invested in another investment house within a short period of time, the profit from the sale of the previous investment house will not be taxed. Use the main residence exemption clause to save taxes. If the house to be sold has been your main residence for 2 of the past 5 years, then the couple will have a tax exemption of 500,000, and a single person will have a tax exemption of 250,000. For more real estate news, please contact Jin Xin Real Estate Tinna Tel 480-287-0180 E-mail: goldtrustrealty2010@ gmail.com