Lesson: Tax Consequences of Home Ownership

In this lesson, discover the tax implications that come with owning a home as Nick Palazzolo, CPA, provides a candid and engaging walkthrough of the rules and classifications surrounding home ownership. From defining a dwelling unit to unraveling the intricacies of personal use versus rental use, Nick presents key concepts that demystify how the IRS views your home. Delve into the criteria that determine whether a property is a principal residence, second home, or rental property, and uncover how each classification carries its own tax consequences. Get to grips with the exclusion of gains on the sale of personal residences and understand when taxpayers can breathe a sigh of relief and when they might owe Uncle Sam. With examples that bring the tax code to life, this lesson equips you with the knowledge to navigate home ownership tax rules with confidence.