Is it a taxing process?

BY KIMBERLY SMITH

If buying a home is one of your goals for 2025, preparation is key! Here’s a quick checklist to help you get ready: 

1. Impact on Loan Approval & Mortgage Terms 

• Lenders evaluate your tax returns to assess your financial stability. If you have unfiled taxes or discrepancies in your returns, it can hurt your chances of getting approved for a loan. 
• A clean tax record can help you secure better loan terms (like lower interest rates). 

2. Understanding Deductions & Tax Benefits 

• Homeownership comes with significant tax benefits, such as the mortgage interest deduction and property tax deduction. 
• Understanding how these deductions affect your taxable income helps you plan your finances properly. 

3. Tax Withholding Adjustments 

• Purchasing a home can increase your deductions, leading to the potential need to adjust your tax withholding at work. 
• This helps you avoid underpaying or overpaying on taxes throughout the year, ensuring you have the proper balance come tax season. 

4. Capital Gains Considerations for Future Sales 

• If you plan to sell your home in the future, capital gains taxes may apply. Being aware of the exemption for primary residences can help you plan ahead for a tax-free profit (up to $250,000 or $500,000 for married couples). 
• Understanding this now prepares you for the tax implications down the line. 

Tip: consult a tax professional early on to ensure your taxes are organized and optimized before buying a home. This can smooth the home-buying process and set you up for long-term financial success. 

Questions? Call Kimberly Smith, Broker Salesperson with King Realtor Group at (702) 291-7098 | www.kimberlysmith.realtor | NV.Lic. No. BS.146388