Selling a home is more than just handing over the keys—it can come with a hefty tax bill. If your home has appreciated significantly, you could be hit with capital gains taxes, especially if your profit exceeds $500,000 for couples or $250,000 for individuals.
In 2024, with home prices continuing to rise, more sellers are finding themselves in this position. But there are ways to minimize the impact. For example, homeowners who have lived in their home for at least two of the last five years may qualify for an exclusion. And for those thinking of reinvesting their profits into another property, a 1031 exchange might be the answer.
Key Takeaway: Understanding the tax implications of selling your home is crucial, and there are strategies to minimize capital gains taxes.
