Avoiding capital gains taxes when selling a house in Atlanta, Georgia
What are capital gains taxes?
Capital gains taxes are an important consideration for individuals selling real estate in Atlanta, Georgia. These are taxes you pay on the profit made from selling a property, and they can significantly impact the amount of money you ultimately receive from the sale. However, there are strategies to minimize or even avoid paying capital gains taxes.
Understanding capital gains taxes on real estate in Georgia
When you sell a property for more than what you paid for it, you may be subject to capital gains taxes on the profit made from the sale. Capital gains taxes are calculated based on the difference between the property's purchase price and the selling price. In Georgia, capital gains are treated as income and are subject to the state's ordinary income tax rates. However, there are certain exemptions that can help reduce or eliminate your capital gains tax liability.
The Home Sale Exclusion
One of the main tax breaks for the sale of a primary residence is the Home Sale Exclusion. This IRS rule allows eligible homeowners to exclude a certain amount of capital gains from their home sale, reducing their taxable income. This exclusion applies if you meet certain criteria, such as owning and using the property as your main home for at least two years within the five-year period leading up to the sale. For single individuals, up to $250,000 of capital gains can be excluded, while married couples filing jointly can exclude up to $500,000.
Choose a cash buyer for your home sale to avoid capital gains taxes.
One strategy to avoid paying capital gains taxes on real estate in Atlanta is to sell your property to a cash home buyer. Cash home buyers like HomeVestors® can provide a quick and hassle-free way to sell your house without incurring capital gains taxes.
As America’s #1 home buyer with over 25 years of experience, HomeVestors offers several advantages to homeowners looking to sell their property quickly and possibly avoid capital gains taxes:
- Get a fast cash offer. HomeVestors provides cash offers for houses, allowing you to receive a fair price for your house without the delays associated with traditional financing. Our hassle-free, 3-step process is simple: Contact us to request an in-person consultation at your house, receive a fair cash offer, and close in as little as three weeks.
- Sell your house “as is.” With HomeVestors, you can sell your house in its current condition. This eliminates the need for costly repairs or renovations before listing your property. You don’t even need to clean before selling a house to us.
- Avoid capital gains taxes. By selling your house to HomeVestors, you can potentially avoid paying capital gains taxes altogether, since the home sale is typically treated as a sale of property. If you meet the ownership and use test requirements, you may be eligible for the capital gains tax exclusion.
Capital gains taxes can significantly impact the profits from selling a house in Atlanta. However, by understanding the rules and taking advantage of exemptions and deductions, you can minimize or even avoid paying these taxes. Selling your property to HomeVestors can provide a convenient and tax-efficient solution, allowing you to sell your house quickly while avoiding capital gains taxes.