Real estate tends to appreciate, and if you stay in your house for long enough, you can make a pretty steep profit when it comes time to sell. But the IRS may be entitled to a share of your earnings, depending on the amount of your capital gains and your personal situation. It’s important to understand what your tax burden may be before selling your home, especially if you’re taking on a new mortgage at today’s sky-high rates.
We’ll cover everything you need to know about capital gains tax on real estate. With the right information, you may be able to avoid paying capital gains tax altogether.