Before You Sell a Home: Capital Gains & 1031 Exchanges
Posted by Patrick Hake on
When people start thinking about selling a home, most of the conversation naturally revolves around real estate.
What is the home worth? How much equity do I have? Where am I going next? What will my next home cost?
Those are all important questions, but there's another one that can be just as important:
What are the tax consequences if I sell?
I've helped many clients sell longtime primary residences without owing federal capital gains tax on the sale because their gain fell within the primary residence exclusion. I've also worked with homeowners whose properties appreciated so much that their gains exceeded the exclusion, sometimes substantially.
I've seen this particularly with longtime homeowners who purchased their homes decades ago…
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