If you sold your primary residence and made a profit, you may be able to exclude that profit from your taxable income. Here’s how it works.

Individuals can exclude up to $250,000 in profit from the sale of a main home (or $500,000 for a married couple) as long as you have owned the home and lived in the home for a minimum of two years. Those two years do not need to be consecutive. In the 5 years prior to the sale of the house, you need to have lived in the house for at least 24 months in that 5-year period. In other words, the home must have been your principal residence.

Just like calculating capital gains, the formula for calculating the gain or loss involves subtracting your cost basis from your selling price.

The formula for calculating your cost basis on your main home is as follows:

Purchase price

+ Purchase costs (title & escrow fees, real estate agent commissions, etc.)

+ Improvements (replacing the roof, new furnace, etc.)

+ Selling costs (title & escrow fees, real estate agent commissions, etc.)

– Accumulated depreciation (for example, if you ever took the office in the home deduction)

= Cost Basis
And then calculating your profit or loss would be:

Selling price

– Cost Basis

= Gain or Loss

Take a look at how many home sold in the Chicago real estate market for June 2014.

Chicago Real Estate Sales – Detached Single Homes

The number of Chicago detached single homes selling in June 2014 increased 4% for the month compared to June 2013. The average selling price increased by 5% to $831,445 and the average market time increased by 15 days. Homes sold for 97% of the listed price.

Neighborhoods included in these statistics are: Avondale, Albany Park, Edgewater, Irving Park, Lakeview, Lincoln Park, Lincoln Square, Logan Square, Loop, Near North Side, Near South Side, Near West Side, North Park, North Center, Rogers Park, Uptown, West Ridge, West Town.

Date

Sold Listings

Average Sold Price

SP:LP

Average Market Time

June 2014

238

$831,445

97%

66

June 2013

228

$790,819

96%

81

Chicago Real Estate Sales – Attached Single Homes

The number of Chicago attached single homes selling in June 2014 increased by 4% for the month when compared to June 2013. The average selling price increased 7% to $414,754 and the average market time decreased by 10 days. Homes sold for 98% of the listed price.

Date

Sold Listings

Average Sold Price

SP:LP

Average Market Time

June 2014

1,537

$414,754

98%

60

June 2013

1,477

$384,605

98%

70

Chicago Real Estate Sales – 2-4 Flats

The number of Chicago multi-family properties selling in June 2014 increased by less than 1% from June 2013. The average selling price increased 2% from June 2013 prices, and the average market time decreased by 28 days. Homes sold for 98% of the listed price.

Date

Sold Listings

Average Sold Price

SP:LP

Average Market Time

June 2014

110

$519,254

98%

53

June 2013

109

$428,663

99%

81

 
Curious about the value of your home? Get your home’s value here!

Karen Breen Elia

MAKING A POSITIVE DIFFERENCE IN PEOPLE’S LIVES.

Karen Breen Elia & Louis M. Elia, REALTORS®, are brokers for homes, condos, and multi-unit properties on Chicago’s North Side.

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Chicago IL 60657

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