Many people who haven’t sold a house in over 20 years are fearful of selling their home because of the capital gains tax they expect they will have to pay.
Good news! Thanks to the Taxpayer Relief Act of 1997, if you have lived in and owned your house at least two of the last five years, you can exclude up to $250,000 if you are single and $500,000 if you are married in capital gains from the sale of your primary residence. This exclusion is available to taxpayers for one sale every two years.
This is a major break for most homeowners… it protects what is often our most valuable asset from a big chunk in taxes!
Everyone’s situation is unique. Be sure to consult your tax or financial advisor to determine how selling your home might affect your finances.
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