💵 Will You Owe Taxes When You Sell Your House?

Homeowners sometimes assume that if they sell for more than they originally paid, the entire difference automatically becomes a huge tax bill. That's not necessarily the case.

🧾 Under current federal rules, eligible homeowners may be able to exclude up to $250,000 of gain, or up to $500,000 for many married couples filing jointly, from the sale of a main residence. Generally, the homeowner needs to satisfy ownership and residence requirements involving at least two of the five years before the sale, although special circumstances and additional rules can apply.

🏡 Also notice the word gain, not “sale price.” Calculating gain can involve what you originally paid, adjusted basis, certain improvements and eligible selling costs. Keeping records of significant home improvements can therefore become surprisingly important years later.

⚠️ Real estate agents aren't tax advisers, so substantial equity or a complicated ownership history is a good reason to talk with a CPA or other qualified tax professional before the property sells rather than after settlement.

📩 Thinking about selling and curious what your property may be worth today? To talk with one of our agents, fill out the Contact Us form located at the bottom of our page, at mycoreteam.pro. We can help you compare the timing based on your property and current local conditions.