Do I have to pay taxes on my profit when I sell my home?

People who haven’t sold a home in decades are sometimes afraid to sell because of all the taxes they fear they will have to pay… over $100,000 is a lot of capital gain!

Not everyone knows that most home-sale profit is now tax free. If you have lived in your home for two of the past five years before the sale, up to $250,000 is tax-free for a single person and up to $500,00 is tax-free for a couple. You can use this exclusion every time you sell a primary residence and haven’t claimed the exclusion on another home in the last two years.

If you meet these requirements, they won’t issue an IRS Form 1099-S at closing and you don’t have to report it on your income tax.

Get more info about taxes and the sale of your home directly from the IRS.

Written By

I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

Related Posts

Weekly real estate market update 5/24/24… more listings coming soon

đź–¨ Print Article When new listings dip as they have this week it can be a concern whether the supply of homes for sale will drop as well, especially when...

Memorial Day 2024… what it’s about and things to do this weekend

🖨 Print Article When we first visited Fort Snelling National Cemetery I wasn’t prepared for was how moving the experience would be… spending time in the midst of a sea...

Subscribe to Our Newsletter for Market Updates & Mid-Century Modern Listings

Our weekly HomesMSP Update includes current local market information and a curated list of mid-century modern properties for sale, plus posts from an inspector, a lender, a stager, info about neighborhoods, life in the Twin Cities… even recipes!

Hidden

Blog Categories

Archives

Sharon and John Hensrud

About Us

The HomesMSP Team is committed to meeting you where you are and listening… really listening to understand you so we can use our extensive knowledge of the market and local neighborhoods to give you personalized service.