Houston Real Estate Resources

Capital Gains Tax Information

Capital Gains- How Does It Affect My Houston Home Sale?

As a general rule, you should not have to pay Capital Gains Tax at the closing of your Houston real estate transaction. Remember, for the sake of this article, a principal residence should qualify for a capital gains tax exemption equal to $250,000.00 if you are single, or $500,000.00 if you are married and filing a joint tax return. It is recommended that you secure and read Internal Revenue Service Publication 523 and Publication 544.

There are very specific methods for calculating how much of the net proceeds from the sale of your Houston property are taxable, and it is based on the following criteria:

  • Whether or not the proceeds qualify as being ordinary income, short term capital gains, or long term capital gains
  • Whether you have any capital gains tax at all based upon the formula for determining the following: 1. Acquisition cost, 2. Allowable expenses, 3. Allowable additions to your capitalized cost and 4. Allowable selling expenses.

The Zoller Group, as Houston real estate specialists, strongly recommend you seek the professional advice from a trusted CPA, Enrolled Agent, Financial Planner, or other knowledgeable professional who will remain focused on your complete financial picture when providing answers to your questions.

To delve deeper in this important topic, as your Houston realtors, we are happy to schedule a consultation to review the potential capital gains tax implications for the sale of your Houston home. Contact us, your Houston real estate resource today to schedule your complimentary consultation.

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