Selling Your Home? Tax Implications You Should Know

Selling a home comes with financial rewards, but it’s important to understand the potential tax implications.

Key Tax Considerations for Home Sellers

1️⃣ Capital Gains Tax

If your home sells for more than you paid for it, you may owe capital gains tax. However, the IRS allows homeowners to exclude:
🏡 $250,000 in profit (single filers)
🏡 $500,000 in profit (married couples)
…if they’ve lived in the home for two out of the last five years.

2️⃣ Home Improvements & Cost Basis

Major home improvements (roof replacements, kitchen remodels, etc.) can reduce your taxable gain. Keep records of these expenses!

3️⃣ 1031 Exchange (For Investors)

If you’re selling an investment property, a 1031 exchange allows you to reinvest in another property while deferring capital gains tax.

Selling this year? Let’s create a plan to maximize your profits and minimize taxes.

📞 Stephanie Glenn | eXp Realty
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