Meet Bill and Mary. A married couple, they sold their house last year and made a profit. Capital gains are subject to a federal tax. However, the profits Bill and Mary earned on the sale of their home are not taxed because of the capital gains tax exemption for profits earned on the sale of a principal residence.
Simply put, the capital gains tax is the tax you pay on the profit from selling your home. This seems basic enough but did you know:
With the home-sale exemption you can exclude up to $500,000 as a married couple of any profits from your capital gains taxes?
You can add capital improvements (money spent on improving the value of your home) to the cost basis of your home. This in turn, lowers the total profit you pay taxes on?
In order to take the home-sale exemption from your capital gains taxes the property you’re selling must be your principal residence?
There is no limit to the number of times you take the home-sale exemption from your capital gains taxes?
These are only a few things to know about the capital gains tax and selling your home. Be sure to get all the details about how capital gains affects you here and sign up for more alerts on changing home ownership tax issues.
*reprinted from http://homeownershipmatters.houselogic.com/
Maybe take your tax return and, say, but this awesome place listed by our good buddy Amanda?
Author:TJ Anderson Phone: 615-364-1530 Dated: April 10th 2013 Views: 1,006 About TJ: TJ Anderson is a Nashville Realtor with Benchmark Realty who's helped countless clients both buy a h...
View our latest blog posts in your RSS reader. Click here to access.
by TJ AndersonI’m starting to sense a little bit of Fixer Upper back
"T.J. is a top notch sales and service professional. I have bought homes in multiple states and dealt with a dozen real-tors and T.J. is the best of the bunch. I need three things from my real-tor: local knowledge, responsiveness, and honesty. T.J. is off the chart in all three areas. I follow his real-estate blog and regularly bounce market questions off of him. T.J. responded quickly and professionally to each and every question my wife and I sent his way. Ultimately T.J. talked my wife and I out of a not so good deal and advised us to wait a while before purchasing a second home (due to our situation not the market). I would not hesitate to recommend T.J. to anyone interested in Nashville real-estate. Form a first time home buyer to someone just new to the area you can't go wrong with this guy!"