Purchasing a home in the Bay Area is one of the best ways to build your wealth; however, taxes come into play almost any time you make money, especially when selling your home. The good news is that as a homeowner, you may qualify for an exclusion of up to $250,000 as an individual or $500,000 if married and filing jointly.
The tax exclusion is often referred to as the 2-out-of-5 rule or home sale exclusion.
To qualify, a homeowner must have owned and used the property as their primary residence for at least 2 years out of the 5-year period ending on the date of the sale. (Consult your tax professional for specifics.)
With that being said, life happens, and sometimes you need to sell sooner than expected. Every situation is different, and you still might qualify for a portion of the exclusion. Again, your tax consultant can help guide you to tax savings, then give me a call to discuss how to maximize the value of your home. Allison Salzer #DRE01978463 #compass #taxsavings
