Capital Gains Tax on Real Estate

Capital Gains Tax on real estate is a tax imposed on the profit made from selling a property. If you sell a property for more than you paid for it, the profit is considered a capital gain and is subject to this tax. The rate can vary based on how long you owned the property—short-term (less than a year) typically faces higher rates, while long-term (more than a year) usually has lower rates. Some exemptions exist, such as for primary residences, where a portion of the gain can be excluded from taxation.