The basics of capital gains tax and when you’ll owe them on a home sale.
With the market as hot as it’s been the last 18 months, I often get asked what clients need to know about capital gains tax. I’m not an accountant, so you should also consult with yours on this topic.
If you have owned your home for less than two years and sell it for a profit, you will owe capital gains tax. If you sell after two years, you don’t need to worry about capital gains tax, unless your accountant has told you otherwise. In general, most people do not need to worry about it if it’s their primary residence. However, if you sell a non-primary residence after two years, you will owe capital gains tax. The amount you’ll owe depends on your tax bracket.
If you have any other questions, don’t hesitate to reach out to me by phone or email. I look forward to hearing from you.