Capital Gains Exceeds $500k - primary residence

[Dallas Jacobsen]

Hello,

We are selling our primary residence after living there for 10 years, and will gain nearly $1M (purchased $390k, sold for $1.375M).  We are immediately buying another house for $1.2M.  As a married couple, we get $500k capital gains for free - but anything we can do beyond that, to avoid paying capital gains on the other $500k?

In case it matters - selling in Washington, buying in N. Carolina.

Thank you!

[Joseph Palmiero]

With a gain of that size I would definitely reach out to a tax professional to unpack your entire situation.  

One idea would be to harvest tax losses by selling any assets, like stock investments, that have decreased in value since you purchased them.