Estimate your federal tax liability when selling a home or investment property. Includes the Section 121 primary residence exclusion and long-term capital gains rates.
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Estimate your federal tax liability when selling a home or investment property. Includes t...
*Federal tax only. State taxes apply separately. Consult a tax attorney or CPA before filing.
When you sell a property for more than you paid, the profit is a capital gain — and it may be taxable. The IRS taxes real estate gains differently based on how long you held the property and whether it was your primary residence. Short-term gains (held under 1 year) are taxed as ordinary income. Long-term gains (held 1+ years) receive preferential rates of 0%, 15%, or 20%. Primary residence sellers may exclude up to $250,000 ($500,000 for married couples) of gain under Section 121.
A real estate attorney can help you structure a sale to minimize tax exposure — from timing the closing to coordinating with a 1031 exchange or installment sale. If you're unsure whether you qualify for the Section 121 exclusion (e.g., partial use, divorce situations, or inherited property), legal counsel is essential.
📧 Contact an AttorneyEverything you need to know about capital gains tax in real estate transactions