ABA Family Legal Guide

Buying and Selling a Home

Tax Considerations

When Emily was negotiating to buy a home, she asked the seller how much property tax he paid. He told her he paid $3,000 a year. After the sale, Emily was shocked to discover that the property tax payable on the home had tripled.

You can't afford to forget about taxes when you are buying or selling a home. You may have to pay transfer taxes, real estate taxes, or a capital gains tax, depending on whether you are buying or selling. Talk to your lawyer about tax issues, so you don't get a nasty shock when the bills arrive. Your lawyer may even be able to tell you about ways you can minimize or deduct the tax.

Subsections

1. Tax Considerations When Buying Your Home
2. Tax Considerations When Selling Your Home