When it comes to selling your home, one of the biggest questions I get from homeowners is:
“Will I have to pay capital gains tax?”
If you’ve built equity over the years, this is definitely something you want to understand before putting your home on the market.

Let’s break it down in a way that’s easy to follow — and most importantly, shows you how to protect your profits.

đź’° What Is Capital Gains Tax in Real Estate?

Capital gains tax is a tax on the profit you make when you sell your home for more than what you originally paid. For example, if you bought your home for $600,000 and sell it for $800,000, you’ve earned a capital gain of $200,000.

But that doesn’t always mean you’ll owe tax on it — and that’s where things get good.

âś… How to Avoid Capital Gains Tax When Selling Your Home

If the home you’re selling is your primary residence, and you’ve lived in it for at least 2 of the last 5 years, you could qualify for a capital gains exclusion:

  • 🧍‍♀️ Single homeowners can exclude up to $250,000

  • đź‘« Married couples filing jointly can exclude up to $500,000

That means you could potentially walk away tax-free on a large portion of your profit! 🎉

🔢 Real Life Example: Keep More of Your Equity

Let’s say your home is worth $800,000 today, and you originally purchased it for $500,000. That’s a $300,000 gain.

  • If you’re married and qualify for the $500,000 exemption — you wouldn’t owe any capital gains tax on the sale.

  • But if you don’t qualify, you could be taxed on that $300,000 gain — and at a rate anywhere from 15–20% depending on your income.

đź’ˇ Moral of the story? Understanding this BEFORE you sell could save you tens of thousands of dollars.

🧠 Planning to Sell? Here’s What You Should Do First

Before listing your home, it’s important to:

  • Confirm how long you’ve lived in the property

  • Gather your original purchase documents and records of improvements

  • Talk to a real estate expert (đź‘‹ hi, that’s me!) and potentially a tax advisor

Together, we can build a plan that helps you maximize your equity and minimize what you owe.

📲 Let’s Make Sure Your Equity Stays Yours

Whether you’re upsizing, downsizing, or relocating — don’t leave money on the table. Capital gains tax can be confusing, but it doesn’t have to be.

As an experienced broker and Santa Clarita real estate expert, I’m here to help you sell smart and stay protected. If you’re thinking about selling, reach out for a free consultation. Let’s make sure your equity is safe — and that you keep more of what you’ve earned!

👉 DM me, call 833-HOME661, or click below to get started.