An ” over-55 home sale exemption,” a noun in real estate terminology, permits homeowners aged 55+ to exclude a portion of their home sale profit from capital gains taxes. For instance, if a 60-year-old homeowner sells their house for $500,000 and has lived there for the past five years, they could be eligible to exclude up to $250,000 of the gain.
This exemption, established in 1997, holds great significance for seniors seeking to downsize or relocate without incurring hefty tax burdens. Benefits include potential tax savings, increased financial flexibility, and the facilitation of a smoother transition into retirement.
