Taxes are one of the most dreaded topics in the world. About the only way to get out of having to deal with them is by death. There are things that people can do to help minimize capital gains taxes on their homes. Here's how to learn what can be done to help with this.
Marriage comes with a lot of benefits beside the obvious. When it comes to property taxes and capital gains, if you are married, you are going to be able to deduct up to $500,000 instead of the smaller $250,000 for singles. If you are married and want to claim this deduction, then you are going to have to have lived in the house for 24 months out of the last five years, along with not having claimed this deduction in the past five years.
Another consideration to help minimize your capital gains would be if in the last year or so, you have changed jobs due to being fired or simply quitting, you should consider selling immediately instead of putting it off. With this deduction you should make sure that you resided in your home for 24 months. If it was for less than 24 months, you may be able to exclude a small amount of the gain. This can only be done if there were some extenuating circumstance.
One of the best things that people can do when it comes to real estate and investing is realize that, long term capital gains are typically going to be taxed at a lower rate than regular income would. This helps minimize any kind of capital gains that you may have. Investing is a risky business and should be done with the help of someone who knows what they are doing to help get you the most in return.
The last thing that you are going to want to do to help minimize your capital gains would be to talk with your tax advisor or accountant. Besides what is listed here, there may be tons more things that a person can do to get the most of their situation. Taxes are something that should be dealt with, with extreme caution. If you are someone who does your own taxes, you should make sure that you understand everything there is when it comes to capital gains. The IRS offers tons of useful information on their website that can help people with understanding their rights and what they can do to help lower their tax liability as low as possible.