If you’ve been thinking about selling your home, there’s a big financial opportunity that many homeowners aren’t taking full advantage of. We’re talking about the $500,000/$250,000 tax exemption on the sale of a primary residence.

This isn't tax advice (we always recommend chatting with a CPA), but it is a well-known and often-overlooked benefit that could put hundreds of thousands of dollars in your pocket—completely tax-free.

The Tax Exemption: How It Works

Here’s the simple version:

• If you’re a couple, you can exclude up to $500,000 in capital gains on the sale of your primary home.
• If you’re single, you can exclude up to $250,000 in capital gains.

For example, let’s say as a couple you bought your home years ago for $1,000,000 and today it’s worth $1,500,000. If you sell, that $500,000 gain is tax-free—meaning you don’t owe a dime on it, and you don’t have to reinvest it into another home or stock.

And just to clarify—this exemption is only on your home’s appreciation. It has nothing to do with your down payment or the principal you’ve paid down over the years.

Why Selling Now Could Be a Smart Move

One of the biggest reasons to consider selling now is that when you buy a new primary residence, you reset the exemption clock. If your new home appreciates over the next several years, you could take advantage of this tax break all over again when you sell in the future.

So even if you’re not looking to upgrade or downgrade, simply selling and buying again at a similar price point could allow you to lock in tax-free gains and set yourself up for another opportunity down the road.

So, What’s Next?

Again, we’re not CPAs, but we know this exemption exists—and it’s worth a conversation. If you’re in a position where your home has appreciated significantly, it might be a great time to connect with your tax professional and explore your options.

And if you’re curious about your home’s value or the best strategy for selling, we’d love to chat. Let’s see what makes the most sense for you and your future!