When selling your home you may be responsible for paying capital gains taxes, which are defined as taxes paid on the positive difference between the sale price of your home and the original purchase price. To understand how much you will owe you will need to know what the adjusted basis on your home is. However, unless you have been involved in multiple real estate transactions, you may be unaware of what this means. Therefore, in this article, we are going to take a deeper look into the definition of adjusted basis and the types of costs that can impact this number.
Game Changers in the Real Estate Market – Pending Evictions
As the first federal aid package protecting tenants from eviction runs out with no agreed-upon plan for an extension in place, fear is growing in many American homes. As of July 31, 2020, the additional federal unemployment expired, and so far, congressional republicans and democrats cannot agree on what an extension of the aid might consist of. President Donald Trump has signed an executive order providing an additional $400 per week of federal unemployment (previously $600 per week) – However, there is a major stipulation that is preventing many politicians from getting on board: states are expected to pay one quarter of the $400, or $100 for each unemployed resident. For California, that adds up to an additional $700 million per week. As most states are not in the financial position to uphold the terms of the executive order, there is now a standstill on how the government will aid in the ongoing unemployment crisis.
Christine's Corner: Common Disclosures: Seller’s Duty and Obligation to Disclose in California
In order to protect buyers, selling a home in the United States requires that specific details be disclosed to potential homebuyers; however, exactly what information has to be disclosed can vary by state. In California, the specifics are outlined in the Department of Real Estate’s “Disclosures in Real Property Transactions,” document, which includes disclosures required by both state and federal law and regulations.