Do I have to pay tax (capital gains) when I sell my home?

If you have lived in your home for 2 out of the last 5 years, you can exclude (not pay any tax) on your profit up to $250,000 ($500,000 if married and filing a joint tax return).

How do I know what my profit is?

To calculate your taxable gain: 

            Sale Price of Home

• Original Cost of Home
• Escrow Costs on the Purchase
• Escrow Costs on the Sale
• Improvements

    =   Gain on Sale of Residence

Note:  The amount of a mortgage payoff does NOT enter into the profit/gain calculation.

What information do I need to bring to my tax appointment?

• Copy of the original escrow statement showing purchase price and escrow costs
• List of improvements and cost
• Copy of the escrow statement showing the selling price and escrow costs