ST. LOUIS, MO (KMOX) - With the real estate market working in their favor, many sellers hope to make a tidy profit from the sale of their home. Could they end up paying for it in taxes?
"I am receiving phone calls. I have a number of tax return clients and they're asking the question," says tax attorney Alex Curcuru with the Alexander Law Firm. "They want to project out if they do move. They just want to ask ahead before they put their house on the market, especially with a lot of empty nesters with extra space that are going to receive top dollar for their home."
Curcuru say under current rules for capital gains, most sellers won't have to worry about tax consequences. If you've lived in a residence two out of the last five years, you can exclude as much as $250,000 in gains if you're single and up to $500,000 if you're married. Those gains won't necessarily be based on what you originally paid for the property. Curcuru says you can account for improvements you've made over the years. "So it's not just what they bought it for many, many years ago. They've probably made improvements which they can account for."
Related
Curcuru reminds sellers that next year, even if they didn't have to pay capital gains taxes, they will have to report capital gains from a sale on their returns.
Related
@2021 Audacy (KMOX). All rights reserved.