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Will you owe Capital Gains tax if you sell your home?

By Trish Greene

Real Estate Agent with VanDorm Realty

February 06, 2009 09:51 AM

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!

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Debra Kukulski, Broker Associate

RE/MAX Suburban - Cary, IL

SRES;SFR,CDPE;GRI;ABR;e-PRO Realtor, Northern IL

Hi Trish. This is such good information and I agree that everyone really does need to consult with their tax professional on how the capital gains rule effects their personal situation.

And, off subject...I have not been here too much lately because my Father was very ill and we lost him 2 weeks ago:-( It is a part of life none of us enjoy going through but we have to be grateful for the time we had.

Thanks for your patience and efforts on guessing the picture on my Wordless Wednesday post....you are the 1st to know it is the reflection on a SS Refrigerator. You had so many great guesses and it was a lot of fun...thanks;-)

Feb 07, 2009 02:44 AM

Trish Greene

VanDorm Realty - Tenino, WA

Team 242- Realtor, ABR

Debra: I am so sorry to hear about your Father...I know it is hard to pick up the boot strings when your heart is so sad. Don't forget to take time out to nurture yourself! Hugs from here!

I feel so lucky to be the first to know what the Wordless pic was! That was fun, it kept me in suspense...Thanks for the mid bending post!:)

Take care of you!

Feb 07, 2009 03:31 AM

Lara O'Keefe

North Texas Home Finders - McKinney, TX

Trish, that is really great information to know. I had always wondered how that worked.

Feb 08, 2009 06:54 AM

Lara: Thank you for taking the time to read this post...enjoy your day!

Feb 12, 2009 01:32 AM

Trish, this is great information to get out. Many people believe that they only still get the one time tax break when selling thier home.

Thank you so much for your very kind comments and the card you sent to me. It was wonderful and touching and I appreciate your concern and thoughtfulness so very much.

Mar 14, 2009 09:29 AM

Will you owe Capital Gains tax if you sell your home?

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