4. Profit for selling your home
Was (and still is) your home the primary residence in the past five years? If yes, you may be entitled to exclude even $250,000 of your home’s value from your income. If you file with your spouse on your tax return, the amount can rise to $500,000.
Another benefit would be the capital gains tax exclusion that was implemented in the Taxpayer Relief Act of 1997. For instance, if you and your beloved spouse bought your house for $200,000 many years ago but actually sold it for $800,000, the $500,000 of your profit ($600,000) will be tax-free.
Psst! Here’s How You Can Protect Your Home in a Lawsuit
And it doesn’t end to homes. Capital gains taxes apply to many things, including cars and boats.
