Capital Gains Exclusions

Capital gains exclusions allow certain individuals to reduce or eliminate the taxes owed on profits from selling assets, like real estate. For example, homeowners can exclude up to $250,000 ($500,000 for married couples) of capital gains on the sale of their primary residence if they meet specific criteria, such as living in the home for at least two of the last five years. This means if you sell your house for more than you bought it, you may not have to pay taxes on some or all of that profit, thereby minimizing your tax burden.