Will you have to pay taxes when you sell your home?
0%, 15%, 20%, or 35%? 😱

Dear Clients and Friends,
As we step into the new year, a common question is making its way to our inbox: “Will I have to pay taxes on the sale of my home?” If you sold your home in 2024 or are planning to sell in 2025, understanding capital gains tax is crucial. Let’s break it down so you can feel confident moving forward.
The Basics of Capital Gains on Home Sales
The good news is that, for most homeowners, paying taxes on capital gains isn’t a concern. Here’s why: If you’re single, the first $250,000 of profit (capital gains) on your home is excluded from taxes. If you’re married and filing jointly, that exclusion doubles to $500,000. This means if your home’s sale profit falls within these limits, you likely won’t owe any taxes on the gain. However, if your profit exceeds these amounts, the portion above the limit may be subject to capital gains tax.
What Happens If Your Profit Exceeds the Limit?
If your net profit surpasses $250,000 (single) or $500,000 (married filing jointly), here’s what you need to know. The tax rate on the portion exceeding the limit depends on your income and falls into one of three brackets: 0%, 15%, or 20%. Your specific rate will align with your overall income bracket, as determined by the IRS. Keep in mind that the IRS loves details and exceptions. The rules surrounding capital gains can get complicated, especially if you’ve owned your home for less than two years or used it as a rental property. That’s why it’s always wise to consult a professional when navigating tax implications.
How We Can Help
If you sold your home last year and are wondering about your tax responsibilities—or if you’re planning to sell in 2025 and anticipate a large profit—don’t stress. Reach out to us! We can connect you with trusted tax professionals who specialize in real estate transactions. They’ll ensure you have the right guidance to make informed decisions. At the end of the day, selling your home is a big milestone. It’s our job to make sure you’re equipped with the tools and knowledge you need to handle it smoothly.
Let’s Connect
Have questions or need advice? We’re here to help! Call, text, or email us anytime. Together, we’ll make sure your 2025 real estate goals align perfectly with your financial plans. Here’s to a year of smart moves and exciting opportunities in real estate!

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