Is the Money From Your Home Sale Taxed Like Income, Or What Can You Expect?
Will the government impose an income tax on the sale of your home, similar to the way you pay taxes on the earnings from your job?
Disclaimer: As a friendly reminder, information in this blog post is meant to be used as a helpful guide, not legal or professional tax advice. For assistance on calculating your home sale taxes, please consult a skilled CPA.
You finally made it to closing and successfully sold your house — and you’ve got plenty of ideas for what to do with the money once it’s wired into your bank account. Maybe a little spending, a little saving, perhaps wiping out some debt…
But then a thought occurs to you: This windfall, as great as it is, feels a lot like income. Does that mean it will be taxed like income? Will you need to set aside a chunk of the profits to cover a hefty tax bill?
The good news, in a nutshell: You most likely don’t need to worry. But it’s a good idea to understand how the process works so you can have complete peace of mind going into the sale.
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