Capital Gains Tax in Real Estate: What Sellers Need to Know

[Bette Hochberger]

Selling a property? Let's talk about Capital Gains Tax. This is the tax on the profit from the sale of your property. The good news is, if it's your primary residence and you've lived there for at least 2 of the last 5 years, you might be exempt from this tax up to a certain limit. For investment properties, though, it's a different story. Planning, such as selling in a year with lower overall income or using a 1031 exchange, can help minimize this tax. Always consult a tax advisor for personalized advice.