Home values have been soaring — but the amount of home sale profit you can shelter from taxes has not. The $250,000/$500,000 exemption hasn’t changed since it was created in
If your home’s value has soared, congratulations. If you decide to sell, beware. Financial adviser James Guarino says some clients don’t realize that home sale profits are potentially taxable until their returns are prepared and by that time, they may have spent the windfall or invested the money in another house. “They’re not happy .
Home values have been soaring but the amount of home sale profit you can shelter from taxes has not. The $250,000/$500,000 exemption hasn’t changed since it was created in 1997.
Understanding how home sale profits are calculated and how you can legally reduce your tax bill could save you money and stress if you re planning to cash in