It’s that time of year again—birds are chirping, the sun is shining, and everyone’s favorite season is here: tax time (just kidding… sort of).
As someone who lives and breathes real estate, I get a lot of questions this time of year about how real estate plays into your taxes. While I always recommend chatting with a great CPA or tax pro, there are a few general reminders and thought starters that come up often—especially if you made a big move, invested in property, or are planning to in the year ahead.
Here are a few things to keep in mind:
1. Did you buy or sell a home in 2024?
If you closed on a new home—or said goodbye to one—you’ll want to make sure your tax professional has all the necessary documents. That includes your closing disclosure, which outlines many of the fees and financials tied to your sale or purchase. While not everything on there will apply to your tax return, it helps provide a clear financial snapshot of your transaction.
Sellers who lived in their home for at least two out of the past five years may also qualify for a capital gains exclusion (a question best left to your accountant, but definitely worth asking about). And buyers may have deductible items tied to points paid, property taxes, or mortgage interest depending on their financial situation.
2. Investment properties, second homes, and rentals
If you own an investment property, a second home, or rent part of your home out on occasion, tax season is a good time to take stock. Not just financially, but operationally. What worked last year? What didn’t? Is it time to revisit your pricing strategy or maintenance plan?
Many of my clients who own rentals also use this time of year to review their expenses—and see where they might make upgrades that benefit them both financially and functionally in the long run. Again, a great CPA can help you sort through what qualifies as deductible and what might just be a good long-term investment.
3. Florida Homestead Exemption Reminder
If you purchased a new primary residence in Florida last year and haven’t filed for your Homestead Exemption, go ahead and take care of that! It can lower your taxable value and offer legal protections as well. The deadline to file is March 1st each year, so if you missed it for 2025, put a reminder on your calendar for next time.
4. Looking ahead to a move in 2025?
If you’re planning to buy, sell, or invest this year, tax time is a great moment to get your financial ducks in a row. You don’t need to know every line item, but having a handle on what you’ve spent (and what you plan to spend) can make the process smoother—especially when talking with a lender or deciding how to price your home.
Also, if you’re self-employed, a high-income earner, or have multiple income sources, now’s the perfect time to loop your CPA into your real estate plans. It might impact how you approach things from a financial standpoint.
Bottom line:
You don’t have to know all the tax rules to make smart real estate moves—but having the right people in your corner makes a big difference. I’m always happy to help you navigate the housing side of things, or connect you with a trusted local tax expert who can take it from there.
Whether you’re organizing paperwork or planning your next move, I’ve got you.
Here’s to a smooth tax season and a sunny spring ahead!
