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Saturday, March 4, 2017

Tax Season: The Effect of Buying and Selling a House

I can't believe it's been a year since we bought  this home that we are now living in.  Time flies so fast that I can still remember  being so busy putting things away' or trying to find things in a pile of boxes.  We bought  this  home in March of 2016 but we didn't really  moved here until the end of June 2016.  We decided to do some   home improvement before we  moved in.  T
We bought our first home  in 2006, lived in it for ten years  then  it was no longer a good size for our growing family.  We bought it for $85k and sold it for $107k.  If you look at the price you would think that we  made money off the price that we sold it but we put around $40  on home improvement so it just work out to be  the same.  So based from our experience, there's not really an effect when you buy a  new house and sell the  old one you lived in for over ten years.


Hubby and I  thought that we would be  paying  taxes  since we sold the house but thank goodness that we did not.  We did our tax today and we did not anticipate of having a refund  because of the property that we sold but we still got a little bit back.  I was relieved!  I told my husband that if we ever have to pay taxes for the house that we sold, we are toast since the money  that we got  from the sell is already spent in improving this new home.  We  spent $16,726 for the new windows.  It was a  necessary  home improvement that we needed to do because  the existing windows were in pretty bad shape that it was  affecting our energy bills.  Owning a house consist of constant home improvement needs.  We already put in around  $25 thousand in this  home and we just owned this for a year.  With that expenses, the value of the home only raise  up to $2k, oh well.  I am just glad that we did not pay any additional tax for selling our former house.  The next big project that we have to  tackle next time is having  new kitchen but that would be  in the years to come, maybe if I win the lottery lol.  

10 Smart Readers SAID::

Stacie @ Divine Lifestyle said...

Home ownership is not a glamorous money maker, that's for sure. But there's nothing like having your OWN home.

Bill Sweeney said...

It's a bummer when you sell and you don't actually make any money on you rhome. However, you can't put a price on your home being YOUR home.

Karissa@Withourbest said...

Wow! That a relief... I can't believe your windows were so pricey!

Chasity said...

Purchasing a home is a huge investment. We purchased our home two years ago. Hopefully we can spruce it up before we sell it to make a bit on it.

Fashion Beyond Forty said...

It's crazy isn't it!? And you are right, the expenses never end. You do have a lovely home though and I really love the style of it!

Dogvills said...

I totally agree about the constant home improvement needs. It's important that we save money for this.

Terri Beavers said...

It's difficult to be a home owner sometimes. I made the decision to let my daughter move into my home even though it's paid for, and I moved into an apartment. I just didn't want to deal with the lawn and any other issues that could come up, due to my failed back surgery. I like that I can call my apartment manager to fix anything and I don't have to deal with it myself. I think it's awesome that you got back taxes instead of having to pay in.

Eileen Lazazzera said...

There are so many costs involved with a new home. It's good that you guys made some money off your old one.

Thirty Something Super Mom said...

I hate having to make home improvements, those can really come at a bad time. Well almost anytime is a bad time in my eyes but it is nice when it is long over with and you enjoy your new windows, roof, porch, or whatever the improvement is.

sara lafountain said...

Home improvements are a necessary evil. We also have a lot of projects to do, but hopefully they will all be worthwhile.

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A work-at-home-mom (WAHM) with  two  lovely kids and a loving husband.  Passionate in writing about  family, product reviews, and  other related articles.  A Mom, a Wife,  a Blogger/Writer, rolled into one.

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