What are the tax implications of selling my property?

What are the tax implications of selling my property?

When you sell a property, you may be subject to capital gains tax on the profit. This depends on how long you've owned the property and whether it was your primary residence.

How do I calculate the capital gains tax?

To calculate capital gains tax, subtract your property's purchase price and any associated costs (like improvements) from the selling price. The profit is your capital gain.

Are there any exemptions I should know about?

Yes, if the property was your primary residence for at least two of the last five years, you may qualify for a capital gains tax exemption up to $250,000 for single filers or $500,000 for married couples.

What if I reinvest the money into another property?

If you reinvest the proceeds into another property, you might qualify for a 1031 exchange, which allows you to defer paying capital gains tax.