Retirees downsizing to net $640k must consider capital gains tax implications

From Yahoo Finance: 2024-07-08 11:30:52

Many retirees downsize their homes in retirement to free up equity, but selling your home can trigger capital gains taxes on profits. A married couple can exclude up to $500,000 in profits from a home sale, but anything over that could be taxed at 0%, 15%, or 20% based on income. To mitigate taxes, consider offsetting gains with losses or using a like-kind exchange. It’s important to consult with a financial advisor to develop a strategy for managing capital gains taxes and maximizing your retirement savings as you downsize your home.



Read more at Yahoo Finance: I’m Selling My House to Net $640k to Downsize for Retirement. How Can I Avoid the Capital Gains Tax?