Putting Your Home on the Market?
Understand the Tax Consequences of a Sale
the school year draws to a close and the days lengthen, you
may be one of the many homeowners who are getting ready to put
their home on the market.
After all, in many locales, summer is the best time of year to
sell a home. But it's important to think not only about the
potential profit (or loss) from a sale, but also about the tax
If you're selling your principal residence, you can exclude up
to $250,000 ($500,000 for joint filers) of gain - as long as
you meet certain tests. Gain that qualifies for exclusion also
is excluded from the 3.8% net investment income tax.
To support an accurate tax basis, be sure to maintain thorough
records, including information on your original cost and
subsequent improvements, reduced by any casualty losses and
depreciation claimed based on business use. Keep in mind that
gain that's allocable to a period of "nonqualified" use
generally isn't excludable.
A loss on the sale of your principal residence generally isn't
deductible. But if part of your home is rented out or used
exclusively for your business, the loss attributable to that
portion may be deductible.
If you're selling a second home, be aware that it won't be
eligible for the gain exclusion. But if it qualifies as a
rental property, it can be considered a business asset, and
you may be able to defer tax on any gains through an
installment sale or a Section 1031 exchange. Or you may be
able to deduct a loss.
If you're considering putting your home on the market, please
contact us to learn more about the potential tax consequences
of a sale. Call us at
SMEED CPA Adds Financial
Services To Help Clients With
Investments & Insurance
often we here at SMEED CPA are asked about financial issues
that impact our clients investments and their portfolios.
We always offered our opinion and suggestions but in order to
help our clients actually execute the changes we suggest,
SMEED has created a Financial Services division.
SMEED Financial Services, Inc. will be able to
work with both individual and business clients on their
investment portfolios and manage assets on their behalf.
SMEED Financial will include Michael Uadiale,
ACA, CPA, CGMA; and Pablo Blanco who has
recently joined SMEED and comes with over 18 years of
financial sales and advising experience with affluent
Watch your inbox and mail boxes for more specific information
on services SMEED Financial Services, Inc will make available
Would You Give Me Your
Feedback & Testimonial
on Our Hotline?
Hello it’s Michael Uadiale, CPA of
SMEED CPA Inc. We’ve just installed a toll-free
number that I would like for you to call and tell me how you
think we are doing as your CPA firm.
Just dial 800-609-9006
extension 3638 and follow the instructions. If we’ve
done a good job please let me know. And if we can
improve on anything, please mention that too.
Us Be Found on
Also as we expand our business,
we find more and more people are using
YELP and Google
to look for us by searching Brentwood accountant or
When they do this we want to
be FOUND on GOOGLE. One way you can help us
is to give us an
ONLINE REVIEW on our Google Maps/Places listing --->
or on our YELP local listing
click here to go to our Google Listing for SMEED CPA and
click on the
YELP link to go there.
Scroll down to the Review area.
On either site it may say: Been here?
Rate and review
You will click on the Rate and
review link and then log in, then
give us a review!
You can choose between 1 and 5
STARS and write in what you think about the tax or accounting
work we have done for you.
It's that simple. Thank
you in advance for your help and cooperation!
As always you can call our offices if you have any
questions about these or any other accounting related issues, at
Regards, Michael Uadiale, CPA,
Managing Partner, SMEED CPA,