Selling your home? Understanding capital gains taxes can save you thousands. The IRS allows homeowners to exclude up to $250,000 (single filers) or $500,000 (married couples) of profit from taxes if the home has been your primary residence for at least two of the past five years.

Improvements, like a new roof or flooring, can increase your home’s cost basis, reducing your taxable gain. For example, if you and your spouse bought a home for $600,000, invested $50,000 in improvements, and sold it for $1.2 million, you’d exclude $500,000, leaving only $50,000 taxable.

Capital gains tax rates range from 0% to 20%, depending on your income, with most middle-income households paying 15%.

Keep detailed records of home improvements, understand your tax bracket, and consult with financial professionals to minimize your tax liability. Selling your home is more than a transaction—it’s about maximizing value. Contact me for guidance!

Read the full blog article here: https://www.joefrankrealtor.com/post/maximize-your-profit-how-capital-gains-taxes-impact-your-home-sale-with-real-life-example