There are few financial events in your life that are as exciting as buying or selling a home. In fact buying or selling a home is one of the biggest financial decisions you will make in your life, and few people do it several times. Although the professionals that come to mind when you think about real estate are Realtors, attorneys and lending offices, the person you should consider speaking to first is your accountant and tax adviser.
If the opportunity presents itself to speak to your tax accountant two years in advance of your purchase – do it! The way you categorize or claim certain deductions, especially business deductions, leading up to a home purchase can impact how much you are approved for. This is because your lender will only accept your income level after unreimbursed business expenses have been deducted. Not many people consider speaking to their accountant about these financial events. Let your accountant be a sound resource for you!
Financial Events – How Does Your Accountant Fit In?
Your accountant should also know when taking a broad look at your finances that one of your goals is to sell your home and purchase a new home. This will give them the knowledge to guide you toward your goal in the most effective way possible. When you are saving for a home there are certain priorities that you should have financially. This mean obvious things like saving for down payment and closing costs, but also has more complex subtleties as far as how much you should be allotting to your home fund compared to retirement or investments. The team of financial advisers at Numerico do more than just crunch your numbers at tax time. They work and think on your behalf at all times to help you accomplish your goals.
Selling a home…whether you are breaking even, taking a loss or cashing out equity should always be discussed with your accountant. How you report a loss or gain may impact your bottom line at tax time and it is important that you plan for what is coming down the pipeline. The team at Numerico is always working hard for you and your financial interests. They will guide you and see you through one of your largest and most complex purchases!