Buying a New Home with No Capital Gains Tax

Dialogue

• Ever wondered if you can sell your house and buy another without paying capital gains tax?
• Let's dive into the Section 121 Exclusion—your potential ticket to tax-free home buying.
• With this exclusion, you can avoid taxes on up to $250,000 of gains, or $500,000 if you're a married couple filing jointly.
• But there's a catch—you must have lived in your home as your primary residence for 2 out of the last 5 years.
• Have you met the 2-year mark? Then you're good to go!
• You can claim this exclusion once every 2 years.
• Here's the exciting part: you can use all your sale proceeds to buy another house without paying taxes if your gains are under the limit.
• If your profits are over the cap, taxes only kick in on the excess.
• Remember, this sweet deal is for primary residences only.
• Planning to move to a vacation home? Sorry, this exclusion won't cover that.
• The best part? You don't have to buy another house to enjoy this exclusion.
• Use the proceeds however you like—no strings attached.
• Thinking of selling an investment property? A 1031 exchange might be your answer, but that's another story.
• Always get advice from a tax pro to navigate these waters.
• Tax laws can be tricky and they're constantly evolving.
• So, if you're eyeing a new home, this could be your strategy for a tax-free transition.
• Are you ready to make the move?
• Share your thoughts below or tag someone who needs to know.