Do Summerville realtors do more than buy and sell houses for sale in Summerville? Many are not aware of the role realtors play in national policies, including taxes! The recent tax cut bill was heavily influenced by realtors on behalf of the vast majority of homeowners. How you ask? Let’s break it down together and learn how the recent tax bill affects homeowners like you.
How Long You Need to Own Your Home
The original tax bill had three items in it or not in it, (I’ll explain that in a minute), that without the realtors, would have been eliminated. The new bill planned to change a long standing policy that if you owned your housOne for two out of the last five years, any equity you pulled out of your house when you sold your home was tax free. (For example if you sold a home in Summerville, you would need to have lived in that Summerville home for at least two of the last five years in order to receive your proceeds tax free.) The new bill changed that to five out of the last eight years. Realtors know that the average person moves every three to five years, resulting in the average home sale being taxed. Realtors successfully worked to get the 2 out of 5 years put back in the bill.
1031 Tax Deferred Exchange
A 1031 Tax Deferred Exchange is where you have an investment property, sell it and rather than pay tax on the gain, you invest the gain in another property. It delays or defers the taxes to a later date when you sell that property. (For example, you buy an investment home for sale in Summerville and when you sell it, you role the profits into another investment property.) The 1031 was taken completely out of the original tax bill. Realtors successfully worked to get the 1031 Exchange put back in the bill. This encourages average investors rather than penalizing them.
Property Tax Deductions
In the original bill, all of the deductions for the property tax on your personal home were going to be eliminated. (For example, you are able to deduct the $3,000 you pay in property taxes every year on your Summerville home when you file your taxes.) Realtors were able to reintroduce and get that from zero up to 10,000 dollars in property tax deduction for your personal home.
As realtors, we take a broader look at the landscape of real estate and we do a lot more than just list and sell houses. In the case of the recent tax bill, we were able to take the concerns of the average homeowner and make sure they were heard regarding the recent tax bill.