Taxes
Capital Gains After Selling a Home: What Right-Sizers Should Know
The $250,000 and $500,000 exclusions, cost basis, and the records you'll wish you'd kept.
By Lisa Copeland · 7 min read
If you've owned and lived in your home for two of the last five years, you may exclude up to $250,000 of gain if you file singly, or $500,000 if you file jointly.
Your gain is the sale price minus selling costs minus your adjusted cost basis. Basis includes the original purchase price plus qualifying capital improvements over the years.
Which is why the shoebox matters. Kitchen remodels, additions, new roofs, and major systems generally add to basis. Repairs generally do not.
This article is education, not tax advice. Before you list, spend an hour with a CPA — it is the highest-return hour in the entire process.