04/13/2026
Thinking about selling your home? Understanding capital gains tax could save you thousands of dollars when you close.
Most homeowners can exclude up to $250,000 in capital gains ($500,000 for married couples) if they've lived in their home as their primary residence for at least 2 of the past 5 years. This means if you bought your home for $300,000 and sell it for $550,000, you likely won't owe any federal capital gains tax on that $250,000 profit. However, there are nuances to consider: timing of your sale, recent moves, rental periods, and state-specific rules can all impact your tax situation. Some improvements and selling costs can also be deducted from your gains, potentially reducing your tax burden even further.
Planning ahead makes all the difference in maximizing your proceeds. Every situation is unique, so it's essential to consult with both your tax professional and real estate agent well before listing.
đ William Yang â (612) 424-2696
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Call, text, or email me to discuss your selling timeline and tax planning strategy. The earlier we start planning, the more opportunities we have to maximize your proceeds.