What Are the Tax Implications of Buying or Selling a Home? Kitsap Peninsula Expert Bre Enbom Explains

If you’re considering buying or selling a home on the Kitsap Peninsula, understanding the tax implications can help you make smarter financial decisions. Local real estate expert Bre Enbom shares key insights on what buyers and sellers should know about taxes in Bremerton, Silverdale, Poulsbo, Gig Harbor, Bainbridge Island, and surrounding areas.

Tax Implications When Buying a Home

Buying a home comes with potential tax benefits that can save you money:

• Mortgage Interest Deduction: You can deduct interest paid on your mortgage up to IRS limits, reducing taxable income in the early years of homeownership.
  
  

• Property Tax Deduction: Local property taxes in Kitsap County may also be deductible.
  
  

• Points Deduction: If you pay points to lower your mortgage interest rate, these may be deductible in the year paid or over the life of the loan.
  
  

• First-Time Homebuyer Programs: Washington State offers specific programs and credits that may provide additional financial benefits.
  
  

Bre notes, “Understanding these deductions before buying allows homeowners to plan their finances and maximize tax savings right from the start.”

Tax Implications When Selling a Home

Selling your Kitsap Peninsula home can trigger tax consequences depending on your situation:

• Capital Gains Tax: If you sell your home for a profit, you may owe capital gains taxes. However, the IRS allows up to $250,000 of gain for single filers and $500,000 for married couples to be excluded if the home was your primary residence for at least two of the last five years.
  
  

• Depreciation Recapture: If the property was used as a rental, you may need to pay taxes on prior depreciation claimed.
  
  

• 1031 Exchange Opportunities: For investment properties, a 1031 exchange allows you to defer capital gains taxes by reinvesting in another property.
  
  

Bre emphasizes, “Planning ahead with a CPA or tax advisor ensures that your transaction is efficient and minimizes surprises.”

Working with a Local Expert

Taxes are only one part of the home buying or selling process. A local expert like Bre Enbom can guide you through Kitsap County’s market trends, property values, and negotiation strategies—helping you make the most of your investment.

Whether you’re buying your first home, selling a longtime property, or managing an investment property, understanding the tax implications is key to a successful transaction. Connect with Bre Enbom, Kitsap Peninsula Realtor®, for expert guidance on buying, selling, and maximizing your real estate investment.