Avoiding Paying Taxes When Selling Your Home: IRS Capital Gain Exclusion

If you want to avoid paying taxes when selling your home there is an IRS capital gain exclusion called Publication 523. This gives people selling their primary residence an exclusion for paying any taxes based on meeting certain criteria. Some of these criteria include occupying the home for at least two of the last five years and owning the home at least two years.

Owning a house is one of the most tax advantageous things a person can do. The IRS and the federal government has made it easy for people to keep their profits when selling a home. While capital gains taxes are anywhere from 15-20%, you can avoid paying any taxes at all when selling your house.

In general you can avoid paying taxes of gains up to $250,000 when single and $500,000 when married on a home sale.

Here is a link to the IRS Publication 523 Selling your home https://www.irs.gov/forms-pubs/about-…

Also Topic 701 Capital gain exclusion for home sale https://www.irs.gov/taxtopics/tc701

This is not tax advice and we are not CPAs. This is general real estate advice. Please contact a tax professional for specific information as to how this affects you personally.

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