capital

Capital Gains on Home Sale

Capital gains on home sale refer to the profit you make when you sell your primary residence or a second home for more than you paid for it. For instance, if you purchased a house for $200,000 and sold it for $250,000, your capital gain would be $50,000.

Understanding capital gains on home sales is crucial because it can have significant financial implications. In many countries, homeowners are eligible for various tax exemptions and deductions that can reduce their tax liability. Moreover, the history of capital gains taxation has undergone significant changes over time, shaping its current landscape.

Read more

By definition, capital gains tax on home sale is the levy imposed on the profit one makes from selling a residential property. For example, if you buy a house for USD 200,000 and sell it for USD 250,000, the USD 50,000 gain is subject to capital gains tax.

This tax is important because it affects not just homeowners, but also the market. Benefits include revenue for the government and discouraging speculative purchases. Historically, capital gains tax on home sale was introduced in the US in 1913 as part of the income tax system.

Read more