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Tax Tips for Selling a Residence.

Real Estate Agent with Berkshire Hathaway HomeServices Preferred Real Estate, Inc.; www.AuburnOpelikaALRealEstate.com

Tax Tips for Selling a Residence

Discover essential insights about federal tax benefits when selling your primary residence in this recent #GTK blog post. Uncover criteria for minimizing capital gains, learn about tax exclusions, and explore strategies to reduce your tax bill through adjustments to the home’s basis.

To claim a tax exclusion, you must have owned the home for at least two years and lived in the home for at least two out of no more than five years of ownership. The tax gain exclusion that’s available is $250,000 if you’re single, or $500,000 if you’re married and use a joint tax return. If you sell at a loss, such as a short sale, you can’t deduct the loss from your income, likely because of the many homeownership benefits subsidized by the government, including loan programs, first-time and low-income homebuyer grants, energy star appliance credits, and so on. Tax exclusions are also subsidized by the government.

To maximize your gain and lessen your tax bill, you can adjust the basis of the home you sold. The basis is the price you paid for the home, including closing costs and settlement fees. The adjusted basis, explains Smart Asset, factors in capital improvements that you made to the home, such as replacing the roof or the HVAC, adding a second story, or laying utility lines to the home. You can also adjust for casualty losses, like restoring your home after a fire or water damage.

The higher your adjusted basis is, the lower your capital gains are.

Questions? Let me know!  I’d love to hear from you. #berkshirehathawayhomeservicespreferredrealestate
#BHHS #BHHSRealEstate #TaxTips #Homeownership

Posted by


Laura Sellers

Associate Broker, Realtor, GRI

Berkshire Hathaway HomeServices 

Preferred Real Estate, Inc.

1810 E. Glenn Avenue, Suite 130

Auburn, AL 36830

Phone: 334-332-7263

Fax: 1-888-217-3682w







If you are buying or selling  property in the Auburn - Opelika, AL  area, my team and I will provide you with the service that you need.  We're the #1 real estate company in Auburn's #1 office.  

Please call me today at (334) 332-7263.


To view homes for sale in the Auburn - Opelika area please click here. 


Referrals are always welcomed and appreciated, Thank-you!



Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Laura and once again your blogs are always so good and thanks for sharing with us.


Feb 23, 2024 08:15 AM
Richard Weeks
Dallas, TX
REALTOR®, Broker
Congratulations on your recent sale.  Nice house and nice job with your presentation.
Feb 25, 2024 05:05 AM