September 26, 2022

27 Sept 2022 · 1 min

Watch on YouTube

0:43

In this short tax‑advice segment, the speaker outlines how homeowners can avoid paying capital‑gains tax on the profit from selling their primary residence. The exclusion allows up to $250,000 of profit tax‑free for single filers and up to $500,000 for married couples filing jointly, provided two conditions are met: the homeowner must have owned the home for at least two years and must have used it as their primary residence for at least two of the five years preceding the sale. The exclusion can be claimed once every two years, meaning a homeowner can buy and sell a home every two years without incurring capital‑gains tax if the criteria are satisfied. The speaker urges viewers to follow these steps to protect their money.

Chapters

You should never pay taxes on profit when you sell your home. And if you follow these steps, you won't have to. If you're single and you sell a home that is your primary residence, you can avoid paying taxes on $250,000 in profit. If you're married and you and your spouse file jointly, you can avoid paying taxes on up to $500,000 in profit. But you have to be able to prove these things: one, that you own the home for at least 2 years, and two, that you lived in the home as your primary residence for at least 2 of the 5 years before the sale. You can get this tax break once every 2 years. That means that you can buy and sell a home every 2 years and not pay taxes on any of the profit as long as you can meet those criteria. Follow me to protect your money.