225. The Home Sale Exclusion: How To Minimize or Eliminate Taxes on The Sale of Your Home

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Jun 6, 2023

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ADVICE

Home Sale Exclusion

Use Section 121 to exclude up to $500,000 of capital gains when selling your primary residence.
It applies to primary residences owned and lived in for at least two of the past five years.

ANECDOTE

Thomas's Experience with Section 121

Thomas Castelli used the home sale exclusion twice, leveraging it to upgrade properties and build equity.
He lived in a multi-unit, allocating the exclusion to his primary unit and later a single-family home.

ADVICE

Renting After Living

Rent out your primary residence after living in it for two years to utilize the full exclusion.
Depreciation recapture is still taxable, even if the capital gain is excluded.

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In this episode, Brandon and Thomas discuss Section 121, also known as the home sale exclusion and the different ways you use it to minimize or even eliminate taxes on the sale of your primary residence. We also discuss some of its many nuances, such as partial exclusions, how it works with rental properties, combining it with 1031 exchanges, and more. If you're a homeowner, this is an episode you won't want to miss! Learn more about Dual City Investments: www.dualcityinvestments.com/ or call 864-757-2429 Schedule a free consultation with Thrasher Law Offices at www.thrasherpllc.com/ Become a Tax Smart Insider today and claim your free bonuses today at www.taxsmartinvestors.com/insiders Subscribe to our YouTube channel: www.youtube.com/c/therealestatecpa Join our Facebook group, the one-stop-shop for real estate investors to learn about tax strategy and stay up to date on changing tax laws: www.facebook.com/groups/taxsmartinvestors To become a client, request an initial consultation from Hall CPA, PLLC at www.therealestatecpa.com/become-client Follow Brandon on Twitter: @bhallcpa Follow Thomas on Twitter: @thomascastelli_ The Tax Smart Real Estate Investors podcast is for general information purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Information on the podcast may not constitute the most up-to-date legal or other information. No reader, user, or listener of this podcast should act or refrain from acting on the basis of information on this podcast without first seeking legal and tax advice from counsel in the relevant jurisdiction. Only your individual attorney and tax advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this podcast or any of the links or resources contained or mentioned within the podcast show and show notes do not create a relationship between the reader, user, or listener and podcast hosts, contributors, or guests.