TAXESTAXESTAXESCAPITAL GAINSCAPITAL GAINSCAPITAL GAINS COSTS OF SELLING YOUR HOMEWhat to Know About By Diana Marshall
What Are Capital Gains Taxes? When you sell a home, the profit you make may be subject to capital gains taxes. Capital gain is the difference between your purchase price (plus improvements) and the sale price.
If you’ve lived in your home 2 of the last 5 years, you may qualify for a capital gains exclusion. Exclusion amounts: $250,000 for individuals $500,000 for married couples filing jointly This means many homeowners pay no capital gains tax when selling a primary residence. The Good News: Many Homeowners Are Exempt
Situations Where You May Owe Taxes: Selling a second home or investment property Not meeting the 2-out-of-5 year rule Profits exceeding the exclusion limits What Can Reduce Your Capital Gains? Home improvements (new roof, kitchen remodel, additions) — keep receipts! Closing costs and selling expenses may be deducted. Special circumstances (like job relocation, divorce, or health issues) may allow partial exclusions.
Why This Matters When Selling? Understanding capital gains helps you: Price your home strategically Time your sale for maximum benefit Avoid surprise tax bills Important Note: This guide is for educational purposes only and should not be considered legal or tax advice. Always consult with a CPA or tax professional for your specific situation.
follow onI help homeowners plan their sale for maximum return, including strategies to minimize costs and position your home to sell for top dollar. Contact me for your complimentary consultation — and request your full home selling guide today! Ready to Sell Smarter?813-956-2156 dianamarshall.online813-956-2156Diana.L.Marshall@gmail.comDiana Marshall