Will you pay tax on the sale of your home? Likely not, unless you have gains that are more than $250,000 or more than $500,000 for married couples.
Until 1997, once you reached the age of 55, you had the one-time option of excluding up to $125,000 of gain on the sale of your home providing it was your primary residence.
Now, anyone, regardless of age, can exclude up to $250,000 of gain or $500,000 for a married couple filing jointly on the sale of a home.
That means most people will pay no tax unless they have lived there for less than 2 out of the last 5 years
Who Qualifies for Tax-free Gains When They Sell Their Home?
To qualify for the capital gain tax exclusion on your home sale, you must meet the following IRS requirements.
You can use this capital gain exclusion to avoid tax on a home sale over and over.
The Law Office of Jeanne M. Reardon assists New York property owners with strategies to protect and pass on their homes and real estate investments. To speak with an experienced New York real estate attorney, call us at (516) 314-8433 or e-mail us. To learn more about our deed transfer services visit us at: www.jreardonlaw.com