Looking at selling our primary home in the next few years and downsizing to a condo. What do I need to know about paying capital gains tax? We’ve owned it and lived here 26 years. We will buy a condo for much less than the home value we are selling.
Married filing joint you get $500k capital gains tax free. Filing single you get $250k.
Anything over that you are charged for the capital gains over the purchase price. You can deduct home improvement costs from the gain. Check with your CPA. Before and after pics are proof of those improvements if you have no receipts.