Boom Times, Bigger Taxes: How to Protect Your Home Sale Profits

Thinking about selling your home in today’s hot market? While the idea of a big payout is tempting, many sellers overlook a hidden cost: capital gains taxes.

Recent data shows that more homeowners are exceeding the capital gains tax exclusion limit, meaning they’ll owe taxes on the profits from their sale. Why? The exclusion hasn’t changed in over 20 years, while home prices have soared. It’s a case of outdated rules clashing with a booming market.

To make matters worse, inflation is adding to the burden. Since the exclusion isn’t adjusted for inflation, even if your home’s value has only risen with inflation, you might still be stuck with a tax bill.

Before you put that “For Sale” sign up, it’s crucial to understand the tax implications. An “Equity Shift Strategy” can help you:

• Minimize Taxes: Plan your sale and upgrades to maximize your tax-free profits.
• Reinvest Wisely: Strategically use your gains for your next home or other investments.
• Prepare for the Future: Choose a new home that aligns with both your lifestyle and long-term financial goals.

Selling your home is a major decision—don’t let unexpected taxes throw you off track.