Homeowners Reap Tax Benefits on Capital Gains from Home Sales
Capital Gains on Home Sale
Capital Gains Partial Exclusion on Home Sale
Capital Gains Tax When Selling a Home
Taxpayers across the country are taking advantage of the capital gains home sale exclusion, thanks to recent changes in tax law.
TRAVERSE CITY, MI, US, May 5, 2023/EINPresswire.com/ -- The sale of a primary residence can be an exciting time for homeowners. But what most don’t know is that with the right planning, they can reap financial benefits in the form of capital gains tax exemptions on home sale.1
Taxpayers across the country are taking advantage of the capital gains home sale exclusion2, thanks to recent changes in tax law. For homeowners who have lived in their primary residence for at least two of the past five years, this law allows them to exclude up to $250,000 of capital gains from their taxes when they sell their homes.
The new law affects those who bought a home prior to 2018 and are now selling it. Homeowners must meet certain criteria in order to take full advantage of these tax benefits.
To qualify, taxpayers must have owned and resided in the property for at least two years during the previous five-year period. Additionally, they must not have excluded another gain from a home sale within the last two years.
According to the IRS, homeowners who have owned and lived in their primary residence for at least two out of the last five years prior to selling are eligible for a $250,000 (for single filers) or $500,000 (for joint filers) capital gains exemption on profits made from the sale. These exemptions apply whether the profits are used to purchase another house or simply pocketed.
In addition to this exemption, there are other strategies that can help homeowners and business owners3 to reduce their tax liabilities on home sales.
For more information about American Tax Service and capital gains on home sales visit https://americantaxservice.org/
Frank Ellis
Harbor Financial
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1 https://americantaxservice.org/capital-gains-and-your-home-sale/
2 https://americantaxservice.org/capital-gains-partial-exclusion-home-sale/
3 https://americantaxservice.org/what-is-capital-gains-tax-on-sale-of-a-business/
