How To Avoid Paying Taxes When Selling Your Home
From Yahoo Finance: 2025-06-18 11:01:00
Selling your home can result in a hefty profit, but be prepared for potential capital gains taxes. However, selling your primary residence after living in it for at least two of the past five years can exempt you from these taxes, up to $250,000 for singles and $500,000 for married couples.
To avoid paying taxes on the sale of your home, consider options like military relocation exemptions, 1031 exchanges for investment properties, and researching exceptions for unforeseen circumstances. Additionally, capital improvements can be deducted to reduce tax liabilities, and installment sales can spread out gains over multiple years to lessen the impact.
Understanding the rules and exemptions surrounding capital gains taxes on the sale of your home is essential to maximize your profits and minimize tax liabilities. Expert guidance from tax professionals can help you navigate the complexities of these regulations and make informed decisions to optimize your financial outcomes.