Selling Your Home? Here’s How Capital Gains Taxes May Work

🏡 Selling Your Home? Here’s How Capital Gains Taxes May Work

Thinking about selling your home this year? Here's something to keep in mind: if your home has gone up in value, you might have to pay capital gains taxes on the profit when you sell. But the good news is, many homeowners can avoid paying taxes on part (or even all) of that profit!

Here’s a quick breakdown:

• If you’ve owned and lived in your home for at least two out of the last five years before selling, you may qualify to exclude up to $250,000 in profit from taxes if you're single, or up to $500,000 if you're married and filing jointly.
• Did you make big upgrades? Improvements like new kitchens, roofs, or major renovations can sometimes reduce how much profit is taxed.
• Planning to sell soon? Start gathering your records of purchase costs, home improvements, and selling expenses. These can all help when it’s time to figure out any taxable gains.

Why does this matter?

Because for many homeowners, this rule helps keep more money in your pocket after a sale—especially with how much home values have grown over the last few years!

But here’s the most important part:
Always consult with a tax professional or CPA to understand how this applies to your personal situation and to make sure you're maximizing your savings.

💬 Curious how selling your home works or if now’s the right time? Let’s chat about your options!