Skip to main
#HomeSale #CapitalGainsTax #SaturdaySchool So this one is not related to the stock market or a retirement savings account, but with the housing market being insane it felt like it still tied into the overarching idea of taxes and personal finance. WHO should be aware of Capital Gains Tax for Home Sale? - All home owners interested in selling their home ... the market is crazy and your house is probably worth more - Just be sure to set some of the profit aside for taxes, as Uncle Sam always comes to collect ... best it is not with interest and penalties WHAT do you need to know about Capital Gains Tax for Home Sale? - First, it is very important to know how this home is classified - is this your primary residency or is it an investment or rental property (this POST we will assume primary residence status) - Similar to the stock market there is Short Term Capital Gains Tax which is your income tax bracket and then Long Term Capital Gains Tax which is 0/15%/20% based on income - If certain criteria are met - "You can sell your primary residence and be exempt from capital gains taxes on the first $250,000 if you are single and $500,000 if married filing jointly." - Investopedia WHERE can I learn more about Home Sale Capital Gains Tax Exemptions? - This is probably not something you want to make mistakes on or do yourself, I would strongly advise you to have a conversation w/ a tax specialist or CPA WHEN should I be thinking about Capital Gains Tax Home Sale? - If you are thinking about selling your home, you should be considering these factors before listing your home for sale - If you have lived in your home for less than 1 year, could waiting a few months be a big difference between short or long term capital gains tax - If you have lived in your home for under 2 years, could waiting a few months allow you to qualify for the tax exemption of $250k for single or $500 k for married WHY should I pay attention to Home Sale Capital Gains Tax? - Ignoring it will only lead to an unpleasant surprise come Tax Day the following year and with large amounts of money you probably want to set that aside ahead of time - Differences between short vs long or qualifying for or not qualifying for the tax exemption can lead to serious difference in the amount of money you get to hold on to - If you have capital losses that you were thinking about realizing, you could time this during the sale of your home to offset some of the taxable income HOW do I qualify for Home Sale Capital Gains Tax Exemption? - Have lived in home as primary residence for 2 non-consecutive years over 5 year period - Have not used this exclusion before in the past 2 years - Again, consider speaking w/ tax specialist or CPA as tax codes change and it is best this is done well Resource: Investopedia / Video: P.S.: Anyone out there big into real estate either for flipping, rental, or commercial? #TaxEfficiency #TaxTail
Own your future.
Build your portfolio.

Own your future.
Build your portfolio.

Invest in stocks, ETFs and crypto. Sign up now to claim free stock on us. Start investing today.
Sign up
Contact Us
Check the background of this firm on FINRA’s BrokerCheck.

© Copyright 2022 Public Holdings, Inc. All Rights Reserved.

Market data powered by Xignite.

Brokerage services for US-listed, registered securities are offered to self-directed customers by Open to the Public Investing, Inc. (“Open to the Public Investing”), a registered broker-dealer and member of FINRA & SIPC. Additional information about your broker can be found by clicking here. Open to Public Investing is a wholly-owned subsidiary of Public Holdings, Inc. (“Public Holdings”). This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Open to the Public Investing is not registered. Securities products offered by Open to the Public Investing are not FDIC insured. Apex Clearing Corporation, our clearing firm, has additional insurance coverage in excess of the regular SIPC limits. Additional information can be found here

Brokerage services for alternative assets available on Public are offered by Dalmore Group, LLC (“Dalmore”), member of FINRA & SIPC. “Alternative assets,” as the term is used at Public, are equity securities that have been issued pursuant to Regulation A of the Securities Act of 1933 (as amended) (“Regulation A”). This content is not investment advice. These investments are speculative, involve substantial risks (including illiquidity and loss of principal), and are not FDIC or SIPC insured. Alternative Assets purchased on the Public platform are not held in an Open to the Public Investing brokerage account and are self-custodied by the purchaser. The issuers of these securities may be an affiliate of Public, and Public (or an affiliate) may earn fees when you purchase or sell Alternative Assets. For more information on risks and conflicts of interest, see these disclosures. An affiliate of Public may be “testing the waters” and considering making an offering of securities under Tier 2 of Regulation A. No money or other consideration is being solicited and, if sent in response, will not be accepted. No offer to buy securities can be accepted, and no part of the purchase price can be received, until an offering statement filed with the SEC has been qualified by the SEC. Any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of acceptance given after the date of qualification by the SEC or as stated in the offering materials relating to an investment opportunity, as applicable. An indication of interest to purchase securities involves no obligation or commitment of any kind.

Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC. Apex Crypto is not a registered broker-dealer or a member of SIPC or FINRA. Cryptocurrencies are not securities and are not FDIC or SIPC insured. Apex Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Please ensure that you fully understand the risks involved before trading: Legal Disclosures, Apex Crypto.

Dalmore and Apex Crypto, LLC are not affiliated with any of the Public Holdings subsidiaries. Commission-free trading of stocks and ETFs refers to $0 commissions for Open to the Public Investing self-directed individual cash brokerage accounts that trade the U.S.-listed, registered securities electronically during the Regular Trading Hours. Keep in mind that other fees such as regulatory fees, Premium subscription fees, commissions on trades during extended trading hours, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Open to the Public Investing’s Fee Schedule to learn more.

Fractional shares are illiquid outside of Public and not transferable. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see our Fractional Share Disclosure to learn more.

All investments involve the risk of loss and the past performance of a security or a financial product does not guarantee future results or returns.