Understanding Capital Gains Taxes on your Home Sale

Clients ask me a lot of questions about capital gains and how it works. 

Several variables work into this calculation:

1. Sale price of the property
2. Property Tax Base AKA Purchase Price
3. Total $ of home improvements made (kitchen remodel, new windows etc), NOT maintenance** 
4. If you own the property as a married couple or single person ($500k/$250K tax exemption)
5. Your tax bracket** (based on income level) which INCLUDES your home sale profits for that tax year
6. Loan Amount on property if you'd like to know your cash profits from a sale, not just the capital gains taxes

**Please consult your financial planner or CPA for the best answer in your situation.  If you need a recommendation, please contact me.

Read more about selling your home in the IRS Publication 523, "Selling Your Home"
Read about capital gains and the different tax rates
If an original owner of the home is now deceased, please consult the Step-up Basis page to see if you can benefit from this tax law.

To see a spreadsheet calculation for your home's sale in today's market, please fill out the information below and we will reach out to you to gather the 5/6 variables above and create a CUSTOM ESTIMATE for you.  

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