Did you know that in 1913 only 1% of the population paid income taxes, with a rate of up to 7% depending on their tax bracket. Yes, taxes are higher today (to say the least), but the good news is that there are still a number of great tax benefits out there. In fact, the Home Sale Tax Exclusion is one of the most incredible tax benefits remaining today!
Here are the top 4 things to know about the Home Sale Tax Exclusion:
- The property must be owner occupied the last 2 out of 5 years.
- Second homes and investment properties are not allowed.
- You only pay taxes on profits above $250,000 for a single person and $500,000 if you’re married and after a 24-month ownership period.
- There are no limits to how many times you may use this benefit.
It is perfectly legal to buy a property, live in it for 2-years, sell the property, take advantage of the Home Sale Tax Exclusion and do it all over again. How else can you make $250k to $500k in profit and pay zero taxes!