Selling your home can be a major financial event, and one of the biggest concerns for many homeowners is how to minimize their tax liability.
The most common way to save on taxes when selling your home is through capital gains exclusion. This exclusion allows you to exclude up to $250,000 of capital gains ($500,000 for married couples) from the sale of your primary residence. To qualify, you must have lived in the home for at least two of the five years leading up to the sale.