Masthead2

Thomas Picardy CFP®

thomas.picardy@lpl.com

3280 East Beltline Ct NE, Ste 300
Grand Rapids, MI 49525
Main: 616.560.7678
Fax: 616.825.6024

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

3 Estate Challenges for Blended Families

3 Estate Challenges for Blended Families

If you’ve been re-married or divorced, these family structures may present some unique challenges. This article will help your clients with blended families think and prepare their estate strategy.

Insurance Needs Assessment: When You're Young and Single

Insurance Needs Assessment: When You're Young and Single

Even if you’re young and single, you should still consider protecting yourself.

Teen Drinking and Your Liability

Teen Drinking and Your Liability

Drinking may be a “rite of passage” for teens, but when it occurs in your home you may be held responsible for their actions.