Tax Implications of Selling Property in Marion, MA

I am Susan Gorden Ryan, and I can tell you what comes up every time someone sells property in Marion. I cannot tell you what you personally owe, that is a question for your accountant or tax attorney, and it depends on your specific situation. What follows is general information, not tax advice.

When you sell a primary residence, federal law allows an exclusion on a portion of the gain (the difference between what you paid and what you sold for) if you have owned and lived in the home for at least two of the last five years. Say, purely as an illustration and not an actual transaction, a home bought for $400,000 and sold for $700,000: the $300,000 gain is the kind of figure that may qualify for the exclusion, within limits that depend on your filing status and ownership history. A second home or investment property does not get the same primary-residence treatment, which is a meaningfully different conversation.

Separately from any income tax question, Massachusetts charges a deed excise tax on the sale itself, currently $4.56 per $1,000 of the sale price, customarily paid by the seller at closing. On a $700,000 sale that is roughly $3,192, and your closing attorney calculates the exact figure.

Get in touch early in your selling timeline, well before you need the number for a tax filing, so you have time to loop in an accountant.