A capital gains tax is applicable whenever someone sells an asset for a profit. The most common instances of capital gains come from the sale of property, stocks, precious metals and bonds. If you are ready to put your home on the market, you should know about the capital gains tax, if it will apply to you, and if so, ideas as to how to reduce the tax burden.
Though briefly explained here, it is always recommend to speak to a tax advisor or specialist regarding your specific financial and tax situation regarding a potential or actual home sale.
When selling a personal residence, most homeowners can exclude up to $250,000 of any profits -- or capital gains -- from taxes. If you file your taxes jointly with a spouse, the exclusion…