Selling Your Home in Los Angeles, California: Understanding Your Tax Deductions

If you're considering selling your home in California, it's important to understand the tax implications and deductions available to you. One key deduction to keep in mind is the exclusion of taxable income, which can be up to $250,000 for single taxpayers and up to $500,000 for married taxpayers filing jointly. To qualify for this exclusion, you must have owned and lived in the home as your primary residence for at least two of the five years preceding the sale. Additionally, there are several other deductions that you can take advantage of when selling your home, including real estate commission, staging costs, eco-friendly improvements, mortgage interest, property taxes, home improvement expenses, selling costs, escrow fees, title fees, and city and county transfer fees. It's important to consult with a tax professional to ensure you follow the latest tax laws and take advantage of all available deductions. By understanding your tax implications and deductions, you can maximize your profits when selling your home in California.