208-664-8980

1875 N. Lakewood Dr.
Suite 102
Coeur d'Alene, ID 83814

Tax

Capital Gains Tax When Selling Your Home

In the center there is a small house with a red roof surrounded by trees with the sun peeking over the horizon. Behind it is a dark blue circle with the words “Capital Gains Tax: When Selling Your Home.” The background is light blue with an arrow pointing down under the house. In the foreground of the house, there is a “For Sale” sign out front. Below the house there is text that reads: When you sell your home, you may be liable for capital gains tax if it has appreciated in value over your ownership period.n the center there is a small house with a red roof surrounded by trees with the sun peeking over the horizon. Behind it is a dark blue circle with the words “Capital Gains Tax: When Selling Your Home.” The background is light blue with an arrow pointing down under the house. In the foreground of the house, there is a “For Sale” sign out front. Below the house there is text that reads: When you sell your home, you may be liable for capital gains tax if it has appreciated in value over your ownership period.In the center there is a family who is moving houses. There is a mother crouching next to two boxes on the left hand side, a daughter holding a house plant in the middle, and a father holding a box while standing up. Behind the mother there is a dark blue circle with wedding rings and sparkles. And behind the father there is a light pink circle. The background is light blue with an arrow pointing down below the family. Below the family there is text that reads: Married homeowners pay no tax on the first 500,000 dollars of profit on their home. (250,000 dollars for single homeowners).In the center there is a family who is moving houses. There is a mother crouching next to two boxes on the left hand side, a daughter holding a house plant in the middle, and a father holding a box while standing up. Behind the mother there is a dark blue circle with wedding rings and sparkles. And behind the father there is a light pink circle. The background is light blue with an arrow pointing down below the family. Below the family there is text that reads: Married homeowners pay no tax on the first 500,000 dollars of profit on their home. (250,000 dollars for single homeowners).In the center there is a person wearing overalls and a painter’s cap. They are painting the background as the color transitions from blue to orange with an arrow below the painter. Pictures of mountains and flowers are hanging on the wall on the left hand side. On the right hand side there is a hammer and screwdriver floating. There is also a bureau placed below the tools and a houseplant in the foreground. Behind these images are bright orange and yellow oval shapes. Below the painter there is text that reads: To qualify, you must meet both the ownership test and the use test. That means you’ve owned and used the house as your main home for at least two out of the last five years, before the sale. You can only use this exemption once every two years. When calculating your profit, you may also add the costs and cost basis for any home improvements.In the center there is a person wearing overalls and a painter’s cap. They are painting the background as the color transitions from blue to orange with an arrow below the painter. Pictures of mountains and flowers are hanging on the wall on the left hand side. On the right hand side there is a hammer and screwdriver floating. There is also a bureau placed below the tools and a houseplant in the foreground. Behind these images are bright orange and yellow oval shapes. Below the painter there is text that reads: To qualify, you must meet both the ownership test and the use test. That means you’ve owned and used the house as your main home for at least two out of the last five years, before the sale. You can only use this exemption once every two years. When calculating your profit, you may can also add the costs and cost basis for any home improvements.In the center there is a “For Sale” sign that has a “Sold” sign pasted over it. Two hands are shaking in the foreground inside a dark blue circle. The background is orange with an arrow below the sign. Below the sign there is text that reads: This illustration is for informational purposes only and is not a replacement for real-life advice regarding capital gains taxes when selling your home. Make sure to consult your tax professional if you have questions about how capital gains may apply in your situation.In the center there is a “For Sale” sign that has a “Sold” sign pasted over it. Two hands are shaking in the foreground inside a dark blue circle. The background is orange with an arrow below the sign. Below the sign there is text that reads: This illustration is for informational purposes only and is not a replacement for real-life advice regarding capital gains taxes when selling your home. Make sure to consult your tax professional if you have questions about how capital gains may apply in your situation.Source: IRS.gov, October 7, 2022.Source: IRS.gov, October 7, 2022.
 

Related Content

Credit Card Payoff

Credit Card Payoff

Find out how long it may take to pay off a credit card balance and what it costs in interest.

Pullbacks, Corrections, and Bear Markets

Pullbacks, Corrections, and Bear Markets

When the market experiences volatility, it may be a good time to review these common terms.

Test Your Life Insurance Knowledge

Test Your Life Insurance Knowledge

How much do you know about one of the most important tools you have to help protect your and your family’s financial future?

 

Have A Question About This Topic?


Thank you! Oops!

Separating the Signal From the Noise

A good professional provides important guidance and insight through the years.

Important Birthdays Over 50

Here's a look at several birthdays and “half-birthdays” that have implications regarding your retirement income.

Understanding Equity Compensation

Net Unrealized Appreciation and how it affects tax responsibilities.

View all articles

Credit Card Payoff

Find out how long it may take to pay off a credit card balance and what it costs in interest.

Long-Term-Care Needs

Estimate potential long-term care costs and what coverage may help address them.

Roth 401(k) vs. Traditional 401(k)

Compare Roth and traditional 401(k) options to see which may work better for your situation.

View all calculators

Global and International Funds

Investors seeking world investments can choose between global and international funds. What's the difference?

Surprises

Making the most of surprises is a great reason to work with us.

Where Is the Market Headed?

We all know the stock market can be unpredictable. We all want to know, "What's next for the financial markets?"

View all videos