A Beginner’s Guide To Selling Your Primary Home
Whether you’re moving to a desirable neighborhood or making room for a growing family, moving on from your current home requires you to take important steps to ensure you and your house are ready for sale. And, as you have likely guessed, selling a house can be a complicated process. It is not only about staging your home well but it involves substantial amounts of documentation and legal procedures.
The good news is that the experts at Commonwealth Tax and Insurance want to assist you in preparing yourself ahead of time by informing you about what documents you’ll need. We know that selling a home requires a ton of prep work and paperwork; therefore, we have put together a Beginner’s Guide to selling your primary home.
Keep proper records: When selling your home, the first step is to have in hand the settlement statement from the original purchase of the house. It is a document that summarizes the terms and conditions of a settlement, most commonly a loan agreement. Ask the settlement agent that did the closing if they provided or will provide you a 1099-S (They will know what that is). Make sure to include it with the records you give your tax professional.
Provide homeowner’s insurance records: It’s a good idea to provide proof of homeowners insurance when selling. It is a transparent way of revealing all significant damage and repairs that your home has undergone. Make sure to have a list of all major improvements like the costs made to the home while you own it. This list of selling expenses could include painting the home for sale, staging, etc.
Get the original sale contract: You may have to provide the original sale contract when you intend to sell. This is the contract that you signed as the buyer of the home.
Advice From The Pros
Hire a tax professional: Make sure the tax professional knows about the sale of your primary home. That will prompt them to ask you the right questions. Also, ensure to review your tax return. Ask them to explain and show where the exemption is displayed on the return.
Have complete records: If you’re selling a house, you’ll need to prepare a disclosure of all documents. As a seller, you’re required to disclose information about your property and its condition to the buyer.
At Commonwealth Tax and Insurance, our goal is to exceed your expectations. As a licensed, certified public accountant and insurance agent in Midlothian, Virginia, we are the go-to experts for all your financial needs. We specialize in accounting, bookkeeping, payroll processing, tax preparation, and tax planning. Visit our website to learn more or contact Commonwealth Tax and Insurance today.