Selling Your Home? How to Reduce (or Avoid) Capital Gains Tax!

There’s a bill in Congress to eliminate capital gains tax on the sale of primary residences. It’s unclear whether it might pass in the future. Until then, if you’re selling your principal home, you may owe taxes on the profit, especially if you’ve lived there a long time. Here are two ways you may be able to reduce your taxable gain: 1) Increase your home’s basis by adding eligible purchase costs and qualified capital improvements and subtracting any decreases, such as depreciation if applicable. 2) Subtract allowable closing costs from the gross selling price to determine the amount realized. Keep proper records of house-related expenditures as you incur them. Contact us for assistance.