How You Can Get a Capital Gains Exemption
Explaining capital gains and an exemption you may qualify for.
Let’s say you’ve been in your home for a while, and now you’ve decided to sell. You’re going to net a certain amount from that sale, which will be subject to capital gains tax. Today we’ll tackle capital gains tax and talk about an exemption you may qualify for.
Before we get into it, I need to give you a quick disclaimer. I am not an accountant, CPA, or attorney. If you want more tax advice, please sit down with one of those tax professionals. The information I’m giving today is just general knowledge.
The first requirement is that you must have used the property as your primary residence for two of the last five years. You also must report the sale and receive a 1099-S form for it. You'll need to do this even if your capital gains are less than the exemption. If you’re married, you can get up to $500,000 exempted, and if you’re single, you can get up to $250,000 exempted
If you have any questions about this exemption or real estate in general, feel free to call or email me. I would love to help.