Sell or Keep the House in a Divorce?
Greetings to the readers of RMF Realty Team’s RealEstateDivorceInfoSC page! Today, we delve into a topic that’s crucial for couples going through a divorce in South Carolina. Navigating the tax maze in South Carolina while determining the fate of your joint home.
Understanding Capital Gains Tax on Selling
If you’re considering selling your home post-divorce, it’s essential to understand capital gains tax. In South Carolina, when you sell a property for more than you purchased it, you may be subject to capital gains tax on the profit. However, there’s a silver lining. If you’ve lived in your home for two out of the last five years, the IRS allows individuals to exclude up to $250,000 of gain from their income, and up to $500,000 for married couples filing jointly.
Tax Implications of Keeping the Home
Deciding to keep the house brings its own set of tax considerations. The spouse who retains the property may face changes in property tax assessments and mortgage interest deductions. It’s important to understand how these changes affect your overall tax burden. Furthermore, if you’re refinancing the home to buy out your spouse’s share, consider how this impacts your mortgage interest deduction.
Don’t Forget About Property Tax
In South Carolina, property taxes can vary significantly depending on your location and the assessed value of your home. If one spouse keeps the house, they’ll be solely responsible for these taxes moving forward. It’s crucial to factor this into your budget.
Professional Advice is Key
Navigating the complexities of tax implications in a divorce situation can be daunting. It’s always wise to consult with a tax professional who can provide personalized advice based on your specific circumstances.
RMF Realty Team Is Here to Help
At RMF Realty Team, we understand that divorce is a challenging time, and decisions about your home are not just financial but emotional. Our team is dedicated to providing you with the support and guidance you need to make the best decision for your future.
Don’t let tax uncertainties make your divorce process more stressful. Contact RMF Realty Team today to schedule a consultation. We’re here to help you navigate through every step of your real estate journey during this transitional phase of life.
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