Capital Gains Tax on Home Sale: An Overview for Forex Traders

6 min read

Capital Gains Taxes (CGT) on home sale profits are payable to the IRS if a person sells a home for more than their purchase price. Depending on how much the profit is, the rates can vary. Generally, if the profits are less than $250,000 for individuals (or $500,000 for married couples filing jointly), then there is no tax on these profits. However, if the profits are more than these amounts, then taxes will apply at 15% or 20%, depending on the profit margin and other conditions. Furthermore, individuals may be able to avail of exemptions when it comes to CGT on the profits generated from the sale of their home.