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What is capital gains tax?
What is capital gains tax? Who pays a capital gains tax? What paperwork should I have or save for year end taxes?
Asked By Paul | Omaha, NE | 824 views | Terms Definitions | 1 year ago
Answer(2)
Todd Bartusek
Berkshire Hathaway Home Services
Great question! Capital gains tax is a tax on the profit you make from selling an asset like real estate, stocks, or other investments. When it comes to real estate, capital gains tax is typically owed when you sell a property for more than what you originally paid for it—minus certain expenses like improvements and selling costs.
Who pays capital gains tax?
If you’re selling your primary residence, you may qualify for an exclusion of up to $250,000 in gains if you're single—or up to $500,000 if you're married and meet ownership and use requirements. If it’s an investment or rental property, then capital gains will likely apply.
What should you save for taxes?
I recommend keeping:
Your closing statements (from both purchase and sale)
Receipts for improvements (not maintenance)
Records of commissions, legal fees, or other selling costs
As a Realtor with 25 years in the Omaha market, I always advise clients to consult with a tax professional for personalized advice. But I’m happy to help gather the documentation you'll need!
Let me know if you’d like a referral to a local CPA or have questions about selling your home—I'm here to help.
— Todd Bartusek
Top 1% Omaha Realtor | All Metro Real Estate Group | Berkshire Hathaway HomeServices
Who pays capital gains tax?
If you’re selling your primary residence, you may qualify for an exclusion of up to $250,000 in gains if you're single—or up to $500,000 if you're married and meet ownership and use requirements. If it’s an investment or rental property, then capital gains will likely apply.
What should you save for taxes?
I recommend keeping:
Your closing statements (from both purchase and sale)
Receipts for improvements (not maintenance)
Records of commissions, legal fees, or other selling costs
As a Realtor with 25 years in the Omaha market, I always advise clients to consult with a tax professional for personalized advice. But I’m happy to help gather the documentation you'll need!
Let me know if you’d like a referral to a local CPA or have questions about selling your home—I'm here to help.
— Todd Bartusek
Top 1% Omaha Realtor | All Metro Real Estate Group | Berkshire Hathaway HomeServices
- 1 month ago
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Scott Bergmann
Realty ONE Group authentic
Capital gains tax is what you pay when you sell an asset, like real estate, for more than you bought it for. If you make a profit on the sale of your home or an investment property, the IRS looks at that profit as taxable income. There are a couple of exceptions: if it’s your primary residence and you’ve lived there at least 2 of the last 5 years, you may be able to exclude up to $250,000 (or $500,000 if married filing jointly) of that gain.
Who pays it? The seller. What paperwork should you keep? Your closing statements (HUD/ALTA), records of improvements you’ve made, and of course your purchase documents. Those help calculate your “basis” and show what your actual gain is. Always loop in your tax pro—they’ll thank you for bringing those papers.
Who pays it? The seller. What paperwork should you keep? Your closing statements (HUD/ALTA), records of improvements you’ve made, and of course your purchase documents. Those help calculate your “basis” and show what your actual gain is. Always loop in your tax pro—they’ll thank you for bringing those papers.
- 4 days ago
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- Unhelpful (0)
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