Selling a home in Anacortes, WA, comes with many financial considerations, and taxes are at the top of the list. Many homeowners wonder: Are there any tax deductions that can help lower my costs? The good news is, yes—several expenses associated with selling your home may be tax-deductible and could help reduce your taxable income.

At Team Kelli Lang, we specialize in helping homeowners maximize their home sale profits while staying compliant with Washington State real estate tax laws. Below, we’ll break down which home-selling costs may be tax-deductible and what you should know before filing your next tax return.

1. Real Estate Agent Commissions

One of the largest expenses when selling a home is the real estate commission paid to your listing and buyer’s agents. Fortunately, these commissions are considered a selling expense and are fully deductible when calculating your home sale profits.

💡 How it works:

• Commissions are deducted from the final sale price when determining your capital gains tax liability.

• Since commissions directly reduce your net proceeds, they help lower your taxable gain.

With Team Kelli Lang, you get expert real estate marketing and negotiation to ensure your home sells at the highest price possible—while keeping tax deductions in mind.

2. Home Improvements & Repairs (If Done to Sell Your Home)

Did you make last-minute upgrades before listing your home in Anacortes? Some of those repair and improvement costs may be tax-deductible, but there’s a catch:

✅ Repairs & Maintenance (Deductible If Directly Related to the Sale)
If you made repairs solely to prepare your home for sale, they may be deductible. Examples include:

• Fixing leaky faucets

• Repainting rooms

• Patching roof damage

• Servicing your HVAC system

✅ Home Improvements (Increase Your Home’s Cost Basis)
Larger home improvements increase your cost basis, meaning they can reduce your taxable capital gain. These include:

• Kitchen or bathroom remodels

• New flooring installation

• Roof replacement

• New windows or doors

💡 Pro Tip: If you’ve made major home improvements in recent years, keep your receipts—they could lower your capital gains tax bill when you sell.

3. Closing Costs & Seller Concessions

Several closing costs associated with selling a home in Anacortes can be deducted or used to reduce capital gains taxes, including:

✅ Title insurance
✅ Escrow fees
✅ Attorney or legal fees
✅ Advertising & marketing expenses
✅ Home staging costs

If you covered buyer closing costs or concessions (such as paying for the buyer’s home warranty or loan fees), those expenses may also be deductible as part of your selling costs.

4. Mortgage Interest & Points Paid to Sell Your Home

If you still had a mortgage when you sold your home, you may be able to deduct the mortgage interest paid for the portion of the year you still owned the home.

Additionally, if you paid points (loan origination fees) when you first bought the home, any remaining, unamortized points may be deductible when you sell.

💡 Ask your tax professional to review your mortgage payoff details to see if you qualify for additional deductions.

5. Property Taxes Paid Before the Sale

If you paid property taxes for the year before selling your home, you can likely deduct the portion of those taxes that apply to the time you owned the home.

For example:

• If you paid $6,000 in property taxes for the full year and sold your home mid-year, you may deduct half of that ($3,000) on your tax return.

Washington State does not have a state income tax, but property taxes can add up—so don’t overlook this deduction!

6. Capital Gains Tax Exclusion (If You Qualify)

One of the biggest tax breaks available to homeowners is the capital gains tax exclusion. If you meet certain qualifications, you may be able to exclude up to $250,000 (single) or $500,000 (married) of your home sale profit from taxes.

To qualify, you must:

✔ Have lived in the home as your primary residence for at least 2 out of the last 5 years before selling.
✔ Not have used the exclusion on another home sale within the past 2 years.
✔ Have owned the home for at least 2 years.

💡 Example:

• You bought your Anacortes home for $400,000 and sold it for $650,000, making a $250,000 gain.

• If you're single, you can exclude the full $250,000—meaning you owe zero capital gains tax.

⚠ If your profit exceeds the exclusion amount, you may owe capital gains tax on the remaining balance.

How to Maximize Your Tax Savings When Selling a Home in Anacortes

✅ Keep Detailed Records

Save all receipts for home improvements, closing costs, and real estate commissions—these documents are essential for reducing your taxable gain.

✅ Work with a Local Real Estate Expert

A skilled real estate agent ensures you sell your home at the right price, with the best terms, and with minimal tax burden. Team Kelli Lang helps sellers navigate deductions, pricing strategies, and market conditions to get the best outcome.

✅ Consult a Tax Professional

Tax laws change, and every homeowner’s situation is unique. Before filing your taxes, consult a CPA or tax professional to ensure you're maximizing your deductions.

Ready to Sell Your Home in Anacortes? Let’s Talk!

Selling a home comes with many financial considerations, but you don’t have to navigate it alone. At Team Kelli Lang, we help homeowners sell quickly, profitably, and with confidence—all while maximizing tax benefits.
📩 Email us at team@kellilang.com
💬 Schedule a free home valuation today!

We make selling a home in Anacortes & Oak Harbor stress-free, profitable, and tax--smart! 🚀