If youve sold a home, then youre probably familiar with the capital gains tax the governments way of getting a piece of the accrued appreciation in your home. If youve owned your house for more than a year, congratulations you have an investment asset. Before you decide to sell your primary residence, a second home or a business property, you need to understand the math.
Capital gains tax is what you pay on any profit from the sale of an investment.
Principal residence exclusion is a tax benefit extended to homeowners who sell their primary residence. The first $250,000 profit on the sale of the home is excluded from capital gains tax. (And its $250,000 per owner. If a home i