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How Much Tax Would I Owe if I Sell My Home?
Manage episode 359816267 series 3437793
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If you’re planning to sell your primary residence or an investment property, you might qualify for certain options to get the most out of the transaction while saving money on your tax bill.
In this episode, Alex details 5 important things to know about how selling your home impacts your taxes.
In this episode, you’ll also hear:
Understanding capital gains tax vs. ordinary income tax
Benefits of Section 121 or a 1031 exchange
Why it’s important to review your home’s title
Must-listen moments:
[00:02:30] If you have received any tax subsidies or credits over time…talk to a tax professional to help determine your cost basis.
[00:04:12] What Section 121 says is that if you have lived in the home for two years or more out of the most recent five year period, you don't have to pay capital gains tax on the first $250,000 in gains if you're single, or the first $500,000 gains if you are married.
[00:08:56] You need to go and pull up your home's title. You might be surprised to see how many times the title is recorded incorrectly.
For more detail on financial topics curated just for freelancers, visit www.freelancefinancefix.com
You’re also invited to connect with me on LinkedIn at https://www.linkedin.com/in/alexmlynch/
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