How Can Sellers Get Tax Exemptions on Their Home Sale?

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Today I am excited to answer a question from one of you! Kate asked, "If I have recently sold and bought a home, how quickly am I taxed on my earnings from the sale of the home?"

It's a question we get quite frequently. Someone who is selling a primary residence can buy or sell a home every 2 years and get up to $250,000 for an individual, and up to $500,000 for a couple, as a tax-free gain on a property. If your property goes up in value by more than $250,000, you would only be taxed after the $250,000.

Now, you don't have to buy another home right away to take advantage of the tax exemption. If you're selling an investment property, for example, it's a bit of a different situation. If you sell an investment property and take a gain, you will be charged taxes on the capital gains, unless you do a 1031 exchange, which allows you to defer any capital gains into another purchase.

If you have any questions about the specifics or how I can help you take advantage of these breaks, give me a call or send me an email. I look forward to hearing from you!