Sellers can save on Capital Gains Taxes!

Do you want to keep more of your money when you sell your home? Homeowners are often dismayed when they see how much money they lose to capital gains taxes. Fortunately, you can file for a capital gains exemption.

The first step to getting a capital gains exemption is to pass the ownership-use test. In other words, the home you’re selling must have been your primary residence for at least two of the last five years. You also can’t have sold another primary residence during that period.

You’ll have to report the sale using a 1099-S form. You need to report the gain, even if it is an exemptable amount. If you go over the exemptable amount, you still have to report the gain. If you’re single, the exemptable amount is 250,000, and if you’re married, it’s 500,000.

This exemption is an awesome way for you to save money on your home sale. If you have any questions about the exemption, contact your tax advisor. For any questions about real estate, don’t hesitate to give us a call or send an email. We’d love to help you.