Whether you’re buying or selling a home, there are so many details to consider, and figuring out the money side of things always raises a lot of questions.
When REALTOR® Cindy Herrera meets with people who are getting ready to sell their home, one of the first questions they always ask is:
“Do I have to pay taxes on the profit?”
In the quick video below, Cindy shares her knowledge on whether or not you have to pay taxes on the profit when you sell your home—and the answer might surprise you:
The answer to this question can be a complicated one, and before we dive into some basic information, we want to be totally upfront: We’re not CPAs, and you should always double check and verify everything with your CPA.
However, there are some simple facts that will help you determine whether or not you have to pay taxes on the profits from your home:
If you have lived in your home for 2 consecutive years out of the last 5 years that you’ve owned your home
if the profit is less than $500,000 for a married couple or less than $250,000 for a single owner
…then you don’t have to pay taxes.
When most people sell their home, they end up putting all of their profits toward their new residence, whether they’re downsizing or moving up. If there’s money leftover (especially if you’re downsizing), sometimes people will pay of debt or use the money to renovate.
Are you thinking about selling your Arizona home? Wondering if you even have enough equity?
Get a free, no strings attached home evaluation right now:
Have you been thinking about selling your home? Reach out to Cindy to set up a meeting—there’s no cost or obligation!
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