Are There Tax Benefits If I Buy or Sell Before the End of the Year? | Insight from Kitsap Real Estate Expert Bre Enbom

As the year winds down, many homeowners and buyers ask the same important question: Are there tax benefits if I buy or sell real estate before December 31? The answer depends on your financial situation, but timing a transaction before year-end can offer meaningful tax advantages for some buyers and sellers—especially here on the Kitsap Peninsula.

According to Bre Enbom, Kitsap Peninsula real estate expert, year-end real estate decisions should be made with both lifestyle and tax planning in mind. “While taxes shouldn’t be the only reason you buy or sell, understanding the potential benefits can help you make a more informed decision,” Bre explains.

Potential Tax Benefits for Buyers

Homebuyers who close before the end of the year may be eligible to deduct certain expenses on their upcoming tax return. These can include mortgage interest paid during the year, property taxes (subject to IRS limits), and in some cases loan points paid at closing. Even purchasing late in the year can provide deductions that carry financial value.

In Kitsap County communities like Bremerton, Port Orchard, Poulsbo, Silverdale, Bainbridge Island, and Gig Harbor, buying before year-end may also allow homeowners to establish a lower tax basis sooner, which can be beneficial long term.

Potential Tax Benefits for Sellers

Sellers may also find year-end advantages. Closing before December 31 can allow you to recognize capital gains in the current tax year, which may be beneficial if your income is expected to rise next year. Primary residence sellers may also qualify for capital gains exclusions—up to $250,000 for individuals and $500,000 for married couples—if ownership and occupancy requirements are met.

Additionally, selling before year-end may simplify tax planning and allow homeowners to reinvest proceeds sooner.

What to Consider Before Making a Move

Tax laws are complex, and benefits vary based on income, filing status, and future plans. It’s important to consult with a tax professional before making decisions based solely on tax timing. From a real estate standpoint, winter often brings motivated buyers and sellers, creating opportunities for negotiation.

“End-of-year transactions can be strategic,” says Bre Enbom. “With the right guidance, you can align your real estate goals with potential tax advantages.”

If you’re considering buying or selling before the end of the year, connect with Bre Enbom, your trusted Kitsap Peninsula Realtor, for expert local insight and personalized guidance.