Case Study : Home Sale Gain Exclusion

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Laurence Smith- Home Sale Gain Exclusion Take Advantage of the Home Sale Gain Exclusion If you sold your home last year, Laurence Smith and his associates at Book 2 Tax want you to take advantage of the Home Sale Gain Exclusion. Their knowledgeable staff of accountants and Tax Preparers understand the rules related to this tax event, and can work to get you the largest refund possible. Filing an income tax return can be complicated, especially if you are found to have made money on the sale of your home. To avoid overpaying on your taxes, find a tax professional who understands the details of the Gain Exclusion. What is a Capital Gain? The term capital gain is often associated with the wealthy or corporate entity. However, every single tax payer can receive a capital gain. Whenever you sell an item for more than you paid for it, you are earning a capital gain. That gain, the amount of money you made on the transaction, is subject to the capital gain tax. This means that the government has the right to tax a percentage of that money you earned. The sale of many different items can result in a capital gain, including stocks, investments, personal property, and homes or residences. As an example, if you purchase a used car for $1,000 and then sell that car for $5,000, you have made a capital gain of $4,000. However, any fees you paid toward that vehicle will be considered. If you restored the car, spending $2,000, that amount is decreased from your total capital gain amount.

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