Now just may be the perfect time for homebuyers and sellers in Florida to take advantage of significant tax benefits. Whether you’re buying or selling a home, completing your transaction before December 31st can offer various financial advantages when filing your taxes.

Here’s why closing your deal before the year ends can help you save money.

 

Mortgage Interest Deduction

If you purchase a home before year-end, you may be eligible to deduct mortgage interest paid on your new loan for the remainder of the year. This deduction can be especially beneficial for first-time homebuyers or those purchasing a higher-value home.

 

Property Tax Deductions

If you buy a home in Florida before December 31st, you may be able to deduct property taxes paid at closing. This deduction applies to the portion of property taxes that are prepaid by the seller or any prorated amounts you assume when you purchase the home. Additionally, if you’re a seller, property taxes paid during the year of the sale can also be deducted.

 

Capital Gains Exclusion for Sellers

If you’re selling your primary residence, closing the sale before the year ends can help you take advantage of the capital gains exclusion. By selling before year-end, you ensure that your profits qualify for this exclusion, which can result in substantial tax savings.

 

Potential Energy-Efficiency Tax Credits

If your new home includes energy-efficient upgrades, such as solar panels or energy-efficient windows, you may qualify for federal energy tax credits. The IRS offers credits for specific energy-efficient home improvements, which can make buying a home before year-end even more financially rewarding.

 

In conclusion, whether you’re buying or selling a home in Florida, finalizing your transaction before the year-end can bring important tax benefits. It’s important to speak to your trusted Real Estate agent – me! – soon so you can develop a plan and put it to work!