Have you ever wondered how capital gains work? Before we share some of the basics, let us state we’re not attorneys nor tax accountants. We ALWAYS suggest everyone speaks to a CPA.
With that out of the way, let’s discuss one of the most RADICAL reasons to buy a piece of Scottsdale luxury real estate 🙂
Did you know you can avoid paying taxes on up to $250,000 (single person) and/or $500,000 (married couple) of capital gains? Basically 250/500k of the profit you make on the sale of a PRIMARY residence.
There are some rules, however.
Capital Gains Basics
- Must be your primary residence
- You own the property for at least 2 years in the 5 years prior to sale
- You used the home as your primary residence for a total of at least 2 years in same timeframe.
- You haven’t excluded the gain from the sale of another property 2 years before sale
If all conditions are met, homeowners can exclude up to $250,000 of their gains (single) and $500,000 for married couple (filing jointly).
As we said, we’re not CPAs. What we ARE is DEEPLY knowledgeable Scottsdale real estate professionals. We protect and connect our clients in UNAMIGINABLE ways.