I’m Selling My House. Will the Profits Be Considered Income and Taxable Gain?
If you've sold your house for a profit or gain, you might wonder whether it'll be taxed. Find the info you need to know about home sale taxes on profits.
So you’ve sold your house for a profit, or are about to close on the sale. Great! But there’s one question you may still be asking: will the profits from selling your home be considered taxable income? The short answer is “sometimes.”
Often, if you’ve lived in the house for at least two years and made a profit of less than $250,000 on the house, you won’t have to worry about taxes. But if it’s been less than two years, or you sold a second home or investment property, or you made a larger profit, these gains can be subject to what’s called “capital gains tax.”
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Ed Kaminsky, a longtime real estate agent serving the Los Angeles area, offers insight on how home sellers can strategize for those inevitable tax implications. Here are a few questions and insights you should know the answer to before recording that home sale on your tax return.
