Home Owner Tax Credit Guide

Yes, you always need to pay taxes for selling anything but there are exceptions.

First, the house that you sold should be your main house. A main house is defined as a house that you have lived in at least 2 years in the last 5 years. It can be a house or a condominium unit. If you have an old house but you don’t live in it that is not your main house as defined by law.

If the house that you sold is not your main house, you will pay for taxes for it. But if the house that you sold is your main house, you will be given an tax exceptions.

If you have a capital gain meaning you profited from the sale of your house, the sale will be tax free for up to $250,000 when you’re single and $500,000 if you’re married. This means that if you’re married and you sold your house for $500,000 or less, you don’t need to pay taxes.

If you sold your house for more than $250,000 or $500,000 depending on your status, capital gains tax will have to be put on the exceeding amount. If you sold your house for $600,000, for example, you have to pay for the capital gains tax of $100,000.

Capital gains tax is 15% federal and additional percent of the $100,000 depending on your state.

It can be pretty complicated to answer the question, “Do I pay taxes when I sell my house?” The answer is simple: you always pay taxes but you also need to know the exceptions.