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You can sell your primary residence and avoid paying capital gains taxes on the first $250,000 of your profits if your tax-filing status is single, and up to $500,000 if married and filing jointly.
This exclusion – $250,000 for single filers and $500,000 for married, joint filers – is large enough that many sellers don't end up paying federal taxes on the capital gains from a home sale.
Assuming you pay 15% on capital gains, you’ll owe $21,000 ($140,000*0.15) in federal taxes after applying the exclusion if you’re married and filing jointly.
When it comes making a profit by selling your primary residence, special rules apply. The main ones are the $250,000 exclusion for single filers and the $500,000 exclusion for married joint filers.
What is the capital gains tax exclusion? The tax break for homeowners is called the capital gains tax exclusion. It’s a federal benefit that allows you to exclude up to $250,000 of home sale ...
If I Net $750k When I Sell My House, How Can I Avoid Capital Gains Taxes? Eric Reed. July 17, 2024 at 7:00 AM ... Taxable gain after exclusion: $250,000. Capital gains rate: 23.8% (including NIIT)
Taxes come into play almost any time you make money. So, if you make a profit off the sale of your property, you’ll probably run into capital gains tax.For example, if you purchased a property ...
Selling your home to downsize can make your retirement more financially stable, but if you have a profit on the sale you might owe capital gains taxes. Fortunately, in many cases those selling ...