Illinois Home Sellers Can Save Up to $500K in Taxes When Selling
How can Illinois home sellers save on taxes when selling their property? Eligible primary-home sellers in Illinois may exclude up to $500,000 of gain when married filing jointly, or $250,000 for single taxpayers. Taxable gain is calculated by starting with the selling price and deducting commissions, selling costs, and adjusted basis from purchase costs and capital improvements. To qualify, homeowners typically need to own the property for a total of 24 months and use it as their residence for at least 730 days within the past five years. If an Illinois seller moved due to work, health issues, or unforeseen circumstances, they may still qualify for a partial exclusion despite not meeting all eligibility criteria.
It is essential for Illinois sellers to maintain records of purchase, inheritance, sale, and any improvements made to the property, as reporting may be necessary for taxable gains or when filing a home-sale tax form.
Understanding these tax implications helps Illinois home sellers make informed decisions, ensuring their home sale remains financially advantageous.
For expert insights on the Hinsdale real estate market, connect with Stana Vukajlovic, realtor at Compass.