Whats the best tax break available to Jane and John Q. Public?
If they’re homeowners, it’s selling their house.Bankrate’s 2010 Tax Guide • Tax tips and tools • How do I … ? • Filing and refunds • Real estate and capital gains • Family and education • On the job • Investments and retirement • Charitable giving • Your state taxes 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 Bob Trinz, senior tax analyst for the Tax and Accounting business of Thomson Reuters. Some sellers are surprised by this break, especially if they’ve been in their homes for a while. That’s because before May 7, 1997, the only way yo
