After The Closing: Seller’s Edition
Congratulations! You have done it!
You’ve sold your house and we are so happy for you! However, your journey does not end at closing and that is why we want to give you a list of to-do’s that will help you be fully prepared for the days ahead.
1. Keep copies of all paperwork related to the closing and settlement
Although it might be tempting to shred the paperwork or put it in storage, you will want to have it handy for April 15. When you file your taxes, you will need documentation for the expenses and proceeds of the sale. Also, after you file your return, you will want to keep the paperwork in case you are audited.
2. Keep proof of improvements and prior purchases
This is for tax purposes, too. The IRS allows you to add the cost of improvements to your home’s cost basis during the time you own the home, which is nice if you have a sizable capital gain. However, to use this tax provision, you need to keep receipts for everything you spent on home improvement.
3. Stay on top of tax laws
Because tax laws constantly change, you will want to keep current to avoid losing money. For example, a recent law allows you to exclude from tax a significant portion of the profits from the sale of your primary residence.
4. Put your proceeds in a money market fund
If you sell and then don’t immediately buy, you will need a safe place to put your money. A money market mutual fund may offer safety, a reasonable rate of return, daily access to your money and check-writing privileges.
5. Choose your next home carefully
Scope out a variety of areas and housing options that meet your family’s needs. Don’t feel pressured to buy. Take your time purchasing your next home; rent for a while if you would like extra time or want to try an area out first before buying.
As always, our team here at Vic Green Realty will be happy to help you through this process and also to help you find a new home, so never hesitate to ask us for help!
Disclaimer: Vic Green Realty is not an accounting or law firm, therefore the information within this article is subject to changes. Always seek professional advice from appropriate sources, accountant, attorneys, etc, when making these decisions or for any questions you may have.
Looking for a New Home?
“If you sell and then don’t immediately buy, you will need a safe place to put your money. A money market mutual fund may offer safety, a reasonable rate of return, daily access to your money and check-writing privileges.”