Selling Your Home Could Cost Capital Gains Tax on Real Estate

Any financial gains from a home sale must be reported to the IRS when filing your tax return.
Selling Your Home Could Cost Capital Gains Tax on Real Estate
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Anne Johnson
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Selling a home could end up costing you. That’s because capital gains taxes apply to real estate, such as your home, and are levied on profits from its sale. The tax rate depends on how long you’ve owned the house and your taxable income.

But how are these taxes determined, and are there any strategies to avoid some of them? How much could selling your home cost in taxes?

Capital Gains Tax on Real Estate

Broadly speaking, you owe capital gains tax based on the profit you make when you sell an investment or asset; this includes your home.
Anne Johnson
Anne Johnson
Author
Anne Johnson was a commercial property & casualty insurance agent for nine years. She was also licensed in health and life insurance. Anne went on to own an advertising agency where she worked with businesses. She has been writing about personal finance for ten years.