When selling a primary home, the seller generally doesn’t have to worry about paying taxes on any profits since the IRS allows a single homeowner to forego taxes on up to $250,000 gained from the sale, and a married couple can exclude up to $500,000. The DiMora Team are real estate experts in the Novi and Northville neighborhoods and we know that with the sale of a second home, you will be responsible for paying taxes on any profits you make, at a rate of up to 20% depending on your tax bracket because it is treated as an investment asset as opposed to a place where you reside. So, when the investment home is sold it’s taxed as income. Check out below to see what is currently listed for sale in Whispering Meadows in July 2020:
22440 Mill Road, Novi: 3 bedrooms, 1.1 bathrooms, 1,450 sq. feet, 2 car garage, Listed Price: $275,000
Whispering Meadows Home Listed For Sale
July 2020
The vast majority of vacation homes are considered personal property and are fully taxable when sold, just as a stock would be, but with an investment property you can deduct depreciation on an annual basis. However, you can’t depreciate a second home if it’s only used for personal use. For more information on Whispering Meadows, or similar Northville or Novi neighborhoods such as Simmons Orchard, Village Oaks and Meadowbrook Glens, contact The DiMora Team today at 248-505-7728 or jim@dimora.com.