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Avoid taxes on your real estate sales

by The Mountain Living Team

Did you know your home value grows tax free up to a certain amount?  Did you know income on the sale of an investment property or second home is taxed at a reduced rate from your ordinary income?  Whether you knew it or not real estate is a great wealth building opportunity. 

When you sell a home, if it is your primary residence, you can exclude $250,000 of the gain or $500,000 for those that file a joint tax return from your taxes.  That's a huge tax savings. and an incredible wealth building tool. See the IRS rules to see if you may qualify.

Recently we have seen home prices rise dramatically in the Summit County market.  It's been a similar story nearly everywhere nationwide.  If you are a home owner, you likely have had an increase in the value of your home.  If you're not selling, that gain doesn't mean much, but if you are, that increase in value could be 100% tax free.

If you own a second home or investment property that you are considering selling, your taxes on the gain could be minimal or deferred altogether.  If you're property is held more than one year, your gain can be considered a long term capital gain and taxed as a long term capital gain rate instead of included in your income and taxed at that, likely higher, rate.  If you are going to reinvest your gain into another property, you can defer your taxes altogether by doing a 1031 Exchange.  

We are not tax accountants, and as you know, every situation is different, but as real estate agents, we are aware of potential tax implications that can come with the sale of your property.  We can help you to identify those situations so you know what you should be talking to your CPA about.  Those conversations will help you determine your best strategy regarding the sale of your home.  Ultimately, that is our goal; to make your real estate experience the best it can be.

Radon is a real concern, even in Summit County

by The Mountain Living Team

Radon gas is an invisible, odorless gas that is naturally occurring in our environment.  It dissipates in the air so, in general, it is harmless.  The danger occurs when it gets trapped in spaces like our home and builds up.  You and your family could be breathing in radon gas and you wouldn't even know it.  

In Summit County, the cost to mitigate a home can run around $1500-2000.  It is a relatively simple fix that just exhausts that trapped air & radon gas out into the air where it can dissipate.  A vapor barrier is typically installed in crawl spaces to try and limit the intrusion of the gas into the home as well.  

A home buyer has an opportunity to test for radon during a home inspection and, if the levels are high, can request the seller pay for the radon mitigation.  A machine that takes hourly readings will be put in the home for about 48 hours.  It provides immediate data and  costs around $150.  If you already own your home and don't need a test that provides quick results, you can buy a test kit at the local hardware store and mail it off for the results.  If you prefer, Summit County will provide a free radon test kit to homeowners. You can pick one up at the Environmental Health Department in the  County Commons building on Peak One Drive in Frisco.

Remember, if you have tested for radon in your home, those results must be disclosed to potential buyers when it comes time to sell.  If your test results are above 4.0 pCi/L the EPA recommends mitigation.  A couple of companies in Summit County to mitigate radon are Summit Radon Solutions 970-470-3613 and Ace Radon 970-453-2435. They will provide you with a free estimate & a limited warranty on their work. 

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Photo of Jason & Meredith Adams Real Estate
Jason & Meredith Adams
Mountain Living Real Estate
101 E. Main Street, #109 / PO Box 4115
Frisco CO 80443