QUESTION
My son wants to sell his house, which is paid for, but capital gains tax will eat up most of the profit. How can he sell and avoid capital gains tax?
Asked on Apr 21st, 2022 on Taxation - Texas
More details to this question:
His income is only about $35,000 a year, which should be 0% capital gains tax, but when he sells the house, that money would put him into the 15% tax bracket.
1 ANSWER
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If your son meets specific criteria of the house sale exemption, he should be able to exclude up to $500,000.00 from Capital Gains depending on his filing status. But, again, you may want to check out Topic No. 701 Sale of Your Home and discuss it with a Tax Attorney to clarify your options.
Answered on May 09th, 2022 at 5:51 AM