What are the capital gains exemptions on the sale of your home?

Daniel: Capital gains on a primary property where the profit will be about 200,000.

Attorney Tom Olsen: Oh, you're talking about selling your home, the home you live in, Daniel?

Daniel: That's correct.

Attorney Tom Olsen Daniel, a single person can avoid capital gains on up to $250,000 profit. A married couple can avoid capital gains on up to $500,000 of profit on the sale of their home. The only requirement would be that you have lived there for two of the last five years.

If it's a relatively new home, you got to live there for two years. If you live there for many, many years and you moved out two years ago, you still qualify because you've lived there two of the last five years. Daniel, does that make sense?

Daniel: Makes sense and no matter what, you don't have to pay capital gains if you fall into them categories on that 200,000

Attorney Tom Olsen: Again, are you single or married, Daniel?

Daniel: Yes, single.

Attorney Tom Olsen: How long have you lived in the home?

Daniel: Six years.

Attorney Tom Olsen: Daniel, it sounds like you qualify as a single person to avoid capital gains on up to $250,000 of profit. All good news for you, Daniel, and by the way, this exception, you can use it as many times as you want to during your lifetime but no-- [background noise] but no more often than every two years Daniel. This is not even a one-time thing. You can sell your home, avoid capital gains, buy another home and do it again sometime if you want to.

Daniel, by the way, we're a real estate attorneys here in Orlando, we have a title company, we can assist you with that sale from contract through closing. Daniel, we're the Olsen law group in Orlando, 407-423-5561, or find out more about us at olsenlawgroup.com.