Once you have successfully sold your house, what should you do with the money once it’s wired into your bank account. The DiMora Team are real estate experts in the Northville and Novi neighborhoods and we realize that this windfall, as great as it is, feels a lot like income. But does that mean it will be taxed like income and will you need to set aside a chunk of the profits to cover a hefty tax bill? The good new is you most likely don’t need to worry. But it’s a good idea to understand how the process works so you can have complete peace of mind going into the sale. Your home sale proceeds are considered a “capital gain,” in other words, the profit you made from the sale of a capital asset. The capital asset, in this event, is your home. Check out below to see what sold in Brooklane Ridge in September 2020:
44319 Highland Court, Northville: 4 bedrooms, 4.2 bathrooms, 4,252 sq. feet, 3 car garage, Sold Price: $640,000
Brooklane Ridge Home Sold
September 2020
To calculate the size of that gain, you’d take the sales price of your property (minus selling expenses), a figure known as your amount realized. From there you’d subtract your adjusted cost basis. Your adjusted cost basis is what you originally paid for the home, plus the cost of any major renovations (called capital improvements). For more information on Brookklane Ridge, or similar Northville or Novi neighborhoods such as Timber Ridge, Willowbrook Farms and Cascades of Northville, contact The DiMora Team today at 248-505-7728 or jim@dimora.com.