Salvador Cortez at Absolute Mortgage Group Inc.
Salvador Cortez
Absolute Mortgage Group Inc.
Phone: (916) 668-0043
Email: [email protected]
NMLS# 1813194
Company NMLS# 1874315
Home
site.enter("0") onMouseLeave= className= > Loan Programs Home Purchase
Refinance
Forgivable Equity Builder Loan
Contractors
Mortgage Calculators
site.enter("1") onMouseLeave= className= > Resources Loan Programs
Loan Process
Mortgage Basics
Online Forms
FAQ
site.enter("2") onMouseLeave= className= > About Testimonials
Meet Our Team
Contact
Blog
site.enter("3") onMouseLeave= className= > Events Upcoming Events
Past Events
The 2nd CA Dream for All
Apply Now
If you’re planning to sell your home, you may have heard about capital gains taxes —but what does that mean for you? The good news is, many homeowners can reduce or even avoid paying taxes on their profits if they meet certain requirements.
Here’s a simple breakdown of how capital gains taxes work when selling your home and how you can potentially keep more money in your pocket .
When you sell your home for more than you originally paid, that profit is called a capital gain . Depending on your situation, the IRS may require you to pay taxes on a portion of that profit. However, many homeowners qualify for exclusions that can significantly reduce or eliminate what they owe.
Many homeowners can exclude a portion of their profits from capital gains taxes if they meet the following criteria:
If you're single, you can exclude up to $250,000 in capital gains.
If you're married and filing jointly, you can exclude up to $500,000 in capital gains.
To qualify, you must have lived in and owned the home for at least two of the last five years before selling.
Even if you don’t qualify for the full exclusion, there are ways to reduce your tax burden when selling:
Did you renovate your kitchen, replace the roof, or upgrade your HVAC? Home improvement costs can be added to your home's original purchase price, reducing your taxable profit . Keep records of any major upgrades to maximize your deductions.
Expenses like real estate commissions, title fees, and staging costs can all be deducted from your home sale profit , lowering the taxable amount.
If you’re selling an investment property and reinvesting in another, a 1031 Exchange allows you to defer capital gains taxes by rolling your profits into a new property purchase.
With home values rising, many sellers are making significant profits on their sales. Understanding how capital gains taxes work—and how to reduce them—can make a huge difference in how much money you keep.
But here’s the most important part: Always consult a tax professional or CPA to ensure you’re making the best financial decisions based on your unique situation.
If you’re considering selling your home, now is a great time to explore your options. Let’s chat about how you can make the most of your home sale and maximize your savings!
#HomeSellingTips #CapitalGains #RealEstate2025 #HomeSaleTaxTips
We've been helping customers afford the home of their dreams for many years and we love what we do... Company NMLS: 1874315 Personal NMLS: 1813194 NMLS Consumer Access
1942 Del Paso Road, Suite 130 Rm 103 Sacramento, CA 95834 Phone: (916) 668-0043 [email protected]
Legal
Privacy Policy
Accessibility Statement
Site Map
Loan Programs