Is The Capital Gains Tax On Property Sales Changing?

The tax code regarding the specifics of capital gains tax property sale is full complicated calculations that you will need to know in order to avoid capital gains taxes for the properties that you sell. The capital gains tax amount for vacant land has changed recently.

Primary Residence vs. Rental Property

Some people purchase a home as a primary residence, and later convert it to a rental property. They later move into a different primary residence. This process works well for the homeowner when obtaining a loan because the terms on primary residences are more flexible than those for rental properties.

However, when you sell a home, you will be assessed capital gains taxes, if you have not lived in the home for at least two of the past five years before the sale. Rental properties are not exempt from capital gains taxes, and the tax amount can be very expensive.

If a home is your primary residence, then you will be able to exempt up to $250.000 in profits if you are single or $500,000 if you are married.

Vacant Land

Selling vacant land generally results in a 15% capital gains tax.