Twila E. Palmer's Blog
A common question for sellers is if they will owe capital gains tax when they sell their home. The answer to that question: it depends. The capital gains tax law known as the Taxpayer Relief Act went into effect in 1997 but there is still a lot confusion over who pays what and why. If you sell your home you will not have to pay capital gains tax if:
- You are selling your personal residence.
- You have $250,000 in profit or less if you are single and $500,000 if married.
- You have lived in your home for two of the last five years.
- The home is not an investment property.
- You need to sell your home because a change in health.
- You need to sell your home because of a long distance relocation.
- You are in the armed services and moved to fulfill your service commitments.