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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.  

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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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