Reported 2 days ago
When selling your primary residence, the IRS allows significant profit exclusions on capital gains taxes—$250,000 for singles and $500,000 for married couples filing jointly. If you're downsizing and netting $620,000, you might owe taxes on any profit exceeding these exclusions, depending on your adjusted cost basis and marital status. Understanding what qualifies as an improvement and calculating your selling costs accurately is essential to determine potential tax liabilities. Consulting a financial advisor can provide clarity on your capital gains tax obligations.
Source: YAHOO