Laura Saunders has made available for download her article, “The Huge Tax Break for Home Sellers: What to Know About the $500,000 Exemption”, published in the Wall Street Journal. The article begins as follows:
The market is sizzling for home sellers, and President Biden wants to raise taxes on long-term capital gains for people with incomes above $1 million.
These two facts make it a good time to focus on the cherished tax break known as the home-sellers’ exemption, both to see how it applies now and how Mr. Biden’s proposals would affect it. Although his proposals explicitly preserve this exemption, some homeowners with large gains would likely owe more if it is enacted.
The home-sellers’ exemption allows millions of Americans to skip taxes on a large chunk of appreciation when they sell their homes—up to $250,000 of profit for single filers and up to $500,000 for married couples filing jointly (and some widows and widowers). These exemptions haven’t changed since enactment in 1997, and they’re not adjusted for inflation.
Click here to view the full article: “The Huge Tax Break for Home Sellers: What to Know About the $500,000 Exemption”
Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal