Real Estate Capital Gains

Real estate capital gains refer to the profit you make when you sell a property for more than you paid for it. Under capital gains tax law, this profit is subject to taxation. The gain is usually calculated as the selling price minus the purchase price, minus any costs related to buying or improving the property. There are often exemptions available, such as for your primary residence, which can reduce the amount of tax you owe. Understanding these regulations can help you plan better when investing in real estate.