10/25/2024
ANSWER: two years.
Here's why...
If you live in your home (that is your primary residence) for at least two years, you can save BIG on capital gains taxes.
→ This means you won't have to pay taxes on up to $250,000 (or $500,000 for married couples) of the profit you make from the sale of your home... which can add up to A LOT.
Here’s a quick example: let’s say you bought your home last year for $250,000 and sold it this year for $305,000. Since you didn’t live there for two years, you’d have to pay taxes on that $55,000 profit (before selling expenses). That could add up to about $8,250 in taxes!
Of course, life happens, and there are plenty of reasons you might need to move before two years are up. But if you can hold off on selling, it can really pay off in the long run!