Market News

Homeowners get a big tax break when they sell: A capital gains tax exclusion

Homeowners get a big tax break when they sell: A capital gains tax exclusion

Homeowners already know the many tax breaks that Uncle Sam offers, most notably mortgage interest and property tax deductions. Well, he also has good tax news for home sellers: Most of them won't owe the Internal Revenue Service a single dime.

When you sell your primary residence, you can make up to $250,000 in profit if you're a single owner, twice that if you're married, and not owe any capital gains taxes.

"Most people are not going to have a tax obligation unless their gain is huge," says Robert Trinz, senior analyst with Thomson Reuters Checkpoint.

How much does the average American pay in property taxes?

This article lists the states that have the lowest and highest property tax rates.  SPOILER ALERT: Residents in Illinois and Wisconsin are not in the favorable category.