Those gains could trigger a tax bill this season, depending on the size of the windfall, experts say.
In 2023, home sellers made a $121,000 profit on the typical median-priced single-family home, according to ATTOM, a nationwide property database.
Still, "the tax laws were written to encourage homeownership," and many sellers qualify for a tax break, Ringbauer said.
Single homeowners can shield up to $250,000 of home sales profit from capital gains taxes and married couples filing jointly can exclude up to $500,000, provided they meet IRS eligibility.
Who qualifies for the capital gains exemptionsThere are strict rules to qualify for the $250,000 or $500,000 capital gains exclusions, Ringbauer warned.
Persons:
Witthaya, Miklos Ringbauer, Ringbauer, you've, There's, Assunta McLane
Organizations:
Summit Place Financial
Locations:
Los Angeles, Summit , New Jersey