The capital-gains exclusion on the sale of your home remains a bright spot in the tax code. For the past six years, married homeowners who meet certain simple conditions have been able to shelter $500,000 in gains when...
The gain on the sale of a home is considered a gain on the sale of a capital asset. There are both short-term capital gains and long-term gains. Short-term gains are gains on investments (i.e. home, stock, land, business, etc.) which are sold after owning for less than a year....
Note: There are special rules for the sale of your primary residence, the biggest one being the capital gains exclusion. Assuming you’ve lived in your home for two of the last five years, you can exclude up to $250,000 in capital gains if you’re a single filer and up to $500,000...
The amount of capital gain subject to tax can also be reduced if an exclusion applies. Perhaps the best-knowncapital gains tax exclusionis for the first $250,000 of gain ($500,000 if filing jointly) from the sale of a personal residence you've owned and lived in for two of the last...
4. Use the home sales exclusion If you sold a house the previous year, you may be able to exclude a portion of the gains from that sale on your taxes. To qualify, you must have owned your home and used it as your main residence for at least two years in the five-year period befo...
Related:Capital Gains Tax Home Sale Exclusion: What to Know (Image credit: Getty Images) If you must sell your home early, you may still be eligible for a portion of the exclusion, depending on the circumstances. Sales due to job changes, illness, or unforeseen circumstances qualify. The pe...
exclusion” for those taxpayers who sell their primary residence (i.e. the home in which they live). This means that the first R 2 million of your capital gain is exempt from tax, meaning that most taxpayers won’t actually need to pay Capital Gains Tax on the sale of their home....
Home Sale Exclusion There’s an important capital gains tax exclusion you might qualify for if you sell your home. The exclusion is worth up to $250,000 ($500,000 if married filing jointly), but the real estate sold must be your primary residence (i.e., main home). To claim this ex...
you move in for another year. After five years, you sell the condo for $450,000. No capital gains tax is due because the profit ($450,000 - $300,000 = $150,000) does not exceed the exclusion amount. Consider an alternative ending in which home values in your area increased exponenti...
The over-55 home sale exemption was a tax law that providedhomeownersover age 55 with a one-timecapital gainsexclusion. Individuals who met the requirements could exclude up to $125,000 of capital gains on the sale of their personal residences. The over-55 home sale exemption has not been ...