I have been asked several times in the last several weeks aboout the Capital Gains Tax...Do sellers owe Capital Gains and how much?
Here is the new rule as I understand it...keep in mind I AM NOT A TAX PROFFESSIONAL... I always recommend that you speak directly to a tax consultant to verify any & all information!
The IRS allows principal-residence sellers to qualify for up to $250,000 in tax-free capital gains (up to $500,000 for a qualified married couple) if they owned and occupied their primary home at least 24 of the last 60 months before its sale.
Broken down..If you have lived in your home for at least 24 of the last 60 months prior to selling your home and DO NOT make a profit of more than $250,000 for singles or a profit more than $500,000 for married couples you will not owe any Capital Gains Tax!
Again, I highly recommend contacting a qualified Tax consultant such to verify any of your tax questions!