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🧠 What Every Real Estate Seller Should Know About Taxes, Insurance, and Investments Before Closing the Deal

Selling your home isn’t just about staging it pretty and picking the highest offer—it’s a financial power move. But most sellers leave thousands on the table (or owe it to the IRS) because they didn’t have the full picture. If you're thinking about selling your home, here’s what you really need to know about taxes, insurance, and investments to protect and grow your profits.

💰 1. Capital Gains Tax – Will Uncle Sam Take a Bite?

If you’ve lived in the home for 2 of the last 5 years, you may qualify for a $250,000 capital gains tax exclusion if you're single, or $500,000 if married filing jointly.

But here’s the catch:

• If it was a rental property or second home, the exclusion likely doesn’t apply.

• Major improvements (like kitchens, roofs, or additions) can increase your cost basis and reduce your taxable gain—keep your receipts.

• Depreciation on rentals must be "recaptured" and taxed when you sell.

👉 Pro Tip: Don’t wait until tax season—talk to a tax-savvy real estate pro before you list.

🛡️ 2. Don’t Cancel Your Insurance Too Soon

Mistake sellers make: canceling homeowners insurance the second they get an offer.

Why that’s risky:

• Deals can fall through last-minute.

• Vacant homes = more risk (theft, damage, liability).

• Most lenders and title companies require insurance until after closing.

✅ Keep your policy active until the day after closing. And notify your insurance company in writing once the deal is done.

📈 3. Invest the Proceeds Like a Pro

You’re not just selling a home—you’re unlocking serious liquidity. So what’s next?

Here are some smart moves:

• Buy another property (residential, rental, or vacation).

• Use a 1031 Exchange to defer taxes on investment property gains.

• Fund an Indexed Universal Life (IUL) policy for tax-free growth and protection.

• Max out retirement accounts or reduce high-interest debt—strategically.

💡 Don’t let your hard-earned equity sit in a low-interest account. Make that money multiply.

🎯 Final Word: Don't Guess. Strategize.

Selling a house is a big financial event. Talk to someone who understands real estate, taxes, insurance and investments to make sure you're not leaving money (or opportunity) behind.

Want to walk away from your home sale with more cash and a smarter financial plan?
👉 Book a free, no-pressure consult with me [insert link to your booking calendar].