If you sold your home any time from January 1, 2016 or after, you now have to declare it on your income tax return. If your home was a primary residence, you are still exempt from capital gains taxes. Failing to report the sale could cost you up to $8,000 in penalties. This new rule is meant to reduce tax evasion and to close a loophole exploited by real estate speculators. Without a requirement to disclose the sale of a primary residence, house flippers bought and sold properties tax-free.
If you forgot to file this year, make sure you file an amendment as soon as you can. Check with your accountant for any further information!
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