Search results
Results from the WOW.Com Content Network
If you have lived in a home as your primary residence for two out of the five years preceding the home’s sale, the IRS lets you exempt $250,000 in profit, or $500,000 if married and filing jointly.
If you’re selling your home in 2025, you might wonder why the capital gains tax exclusion for your primary residence—$250,000 if you’re single, $500,000 for couples—remains unchanged from ...
Qualify for a partial exclusion: According to IRS Publication 523, certain situations may make you eligible for an exclusion of gain. As long as you sold the home because of work, your health or ...
Any unrecaptured gain from the sale of Section 1250 real property (25%) ... One notable exception to capital gains tax rules is the sale of your primary home. Up to $250,000 — $500,000 for ...
Capital gains tax rates were significantly increased in the 1969 and 1976 Tax Reform Acts. [11] In 1978, Congress eliminated the minimum tax on excluded gains and increased the exclusion to 60%, reducing the maximum rate to 28%. [11] The 1981 tax rate reductions further reduced capital gains rates to a maximum of 20%.
The top marginal long term capital gains rate fell from 28% to 20%, subject to certain phase-in rules. The 15% bracket was lowered to 10%. The 15% bracket was lowered to 10%. The act permanently exempted from taxation the capital gains on the sale of a personal residence of up to $500,000 for married couples filing jointly and $250,000 for singles.
The gain realized on the sale of a principal residence is not taxable. A gain realized on the sale of other real estate held at least 30 years, however, is not taxable, although this will become subject to 15.5% social security taxes as of 2012. (There is a sliding scale for non-principal residence property owned for between 22 and 30 years.)
Profit from sale: $750,000. Taxable gain after exclusion: $250,000. Capital gains rate: 23.8% (including NIIT) Capital gains taxes owed: $59,500. Bottom Line. You have sold your house and made ...