2023 housing market
Selling your home can be a significant financial decision, and it's important to understand the tax implications that come with it. If you're thinking about selling your home in 2023, it's important to start planning now to avoid any unexpected tax liabilities. In this article, we'll discuss what homeowners need to know about taxes when selling their home in 2023.
First, let's talk about what taxes you may be subject to when selling your home. Under current tax laws, homeowners can exclude up to $250,000 ($500,000 for married couples filing jointly) of capital gains from the sale of their primary residence if they have owned and lived in the home for at least two of the past five years. This exclusion applies to gains from the sale of a primary residence, not investment properties.
It's important to note that any gain recognized in 2023 won't be reportable or taxable until 2024. However, it's still important to figure out your basis and adjustments now. This includes gathering up receipts for any improvements or repairs made to your home over the years. These expenses can be added to your home's basis, which will reduce your overall capital gain when you sell. By doing this work now, you'll save yourself a headache next tax season.
Teri Pacitto, Broker with The Pacitto Group and Avant One Real Estate in Thousand Oaks, advises that homeowners always discuss any tax situation with their tax advisor or attorney. They can provide guidance on how to best structure the sale of your home to minimize your tax liability.
Another important factor to consider is the length of time you've owned your home. If you've owned your home for less than two years, you may not be eligible for the capital gains exclusion. In this case, you'll need to pay taxes on any capital gains you realize from the sale of your home.
Additionally, if you've used your home for both personal and business purposes, you may be subject to a partial exclusion. This is common for those who operate a home-based business or rent out a portion of their home. In these cases, it's important to work with a tax professional to ensure you're correctly calculating your tax liability.
In conclusion, if you're thinking about selling your home in 2023, it's important to start planning now. Understanding your basis and adjustments, as well as discussing any tax situations with your tax advisor or attorney, can help minimize your tax liability and make the selling process smoother. Remember, selling your home is a significant financial decision, and it's important to take the time to understand the tax implications that come with it.
Stay up to date on the latest real estate trends.
senior homeowners
The perks, the costs, and the big picture—how HOA communities in Westlake Village, Thousand Oaks, and beyond can impact your next home purchase.
preparing your home to sell
Know which home updates pay off — and which ones to skip — in the Conejo Valley and Ventura County market
westlake village real estate
A Look at the Westlake Village Real Estate Market and Why Preparation and Exposure Are Everything
55 + communities
Why Second Opinions, Market Exposure, and Transparent Representation Matter More Than Ever — Especially in Westlake Village, Thousand Oaks & Surrounding Communities
2025 Housing Market
More homes, better timing, less chaos – Here’s why local sellers and buyers are making their move now.
2025 Housing Market
Hidden Wealth at Home: Why Now Might Be the Perfect Time To Re-Evaluate Your Property’s Value
2025 Housing Market
One Step Could Save You Thousands: The Overlooked Risk in Dual Agency and Off-Market Home Sales
critical choices when selling a home
Too many homeowners are overlooked in the rush to close deals. Discover how truly being heard can transform your real estate experience—and your results.
2025 Housing Market
Why Overpricing in Westlake Village, Thousand Oaks, and Surrounding Areas Could Cost You More Than You Think
You’ve got questions and we can’t wait to answer them.