top of page

Understanding Capital Gains in Real Estate



When you sell a stock, you owe taxes on your gain—the difference between what you paid for the stock and what you sold it for. The same is true with selling a home (or a second home), but there are some special considerations.

How to Calculate Gain

In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate this:

1. Take the purchase price of the home: This is the sale price, not the amount of money you actually contributed at closing.

2. Add adjustments:

Recent Posts

See All

How to know when to reduce your asking price

While you’d like to get the best price for your home, consider our six reasons to reduce your home price. These six signs may be telling you it’s time to lower your price. 1. You’re drawing few looker

Comments


bottom of page