Selling your home is one of the biggest financial transactions you’ll ever make. While many homeowners worry about a large tax bill, the reality is that rules like the Internal Revenue Code Section 121 can allow you to keep much, or even all, of your profit. Here’s how capital gains on a primary residence are calculated, and which exclusions apply. All of it can make a significant difference in how much you walk away with.
A financial advisor can help you evaluate how a home sale fits into your broader tax and investment strategy.
How Capital Gains Tax Works When You Sell a Home
When you sell a home for more than you originally paid, the profit…
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