11. Capital Gain Exclusion When Selling Your House
Want to sell your house? You might receive a pleasant surprise from Uncle Sam. According to the taxman, you’ll benefit from a tax-free gain from the sale. In general, if you’re selling your home, you must pay taxes on capital gains, but if you’re actually married and file a joint return, the tax doesn’t apply if. At least not if you cash in up to $500,000.
Yet, that’s not all. There are other things you have to consider… So, you don’t have to pay the tax if you actually owned the house for at least 2 of the past 5 years and lived there for at least 2 of the past 5 years.
All these requirements must be checked if you want to benefit from capital gain exclusion.
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