) - With significant appreciation in home prices over the past several years, many owners are uncertain about the tax implications of selling their homes. However, there are a few ways to game the system. Take it from financial expert,
How much you save depends on your status. The exclusion amount for single taxpayers is $250,000. That means the first $250,000 of capital gains is not taxed. The Certified Financial Planner says this only applies to your primary residence. As for how that’s defined, your primary residence is any residence that you have lived in as your primary home for two of the past five years. It does not need to be consecutive, and it’s allowable once every two years.The wealth management expert says, “The simplest way to explain it is the gain is what you sell the house for less your basis.