Capital Gains Questions

Could selling your home trigger unexpected capital gains taxes?

🏡 Capital Gains Questions Are Growing for Florida Homeowners

Many longtime Florida homeowners are sitting on far more equity than they realize. While that's great news, it also means some sellers may face unexpected capital gains tax questions when it comes time to sell.

According to the National Association of Realtors®, nearly 18% of Florida owner-occupied households are estimated to have gains exceeding the current federal exclusion limits. Those limits—$250,000 for individuals and $500,000 for married couples filing jointly—have remained unchanged since 1997, despite decades of rising home values.

That doesn't automatically mean taxes will be owed. Capital gains are based on profit, not sale price, and factors such as the original purchase price, qualifying improvements, and certain selling expenses may affect the calculation.

Longtime owners, empty nesters, and homeowners who purchased before Florida's significant appreciation may benefit from discussing their options before putting a home on the market.

Planning ahead can help avoid surprises and make the transition smoother.

As always, every situation is different. If you're considering selling and have questions about timing or the process, I'm happy to be a resource.

📍 Serving Wakulla, Leon, and Franklin Counties

Source: Florida Realtors® News, Amy Connolly, based on National Association of Realtors® research.