Thinking of selling your primary residence, but worried about the tax burden? Section 121 of the Internal Revenue Code can help with tax savings, but you must meet the eligibility requirements. In this short episode clip, find out what the Section 121 Exclusion is and how you can use it.
0:06 “When you sell the primary residence, you get some tax-free treatment. You get an exclusion – if you’re single, $250,000 of gain is tax-free and if you’re married, $500,000 of gain is tax-free”
0:21 “There’s confusion because this rule used to be once in a lifetime…you can do this rule every two years”
0:36 “When you look at the requirements, all you have to do is have lived in your home for two out of the last five years. You have to own it two of the last five years and lived in it two out of the last five years”
1:07 “Talk about a way to create some liquidity for your retirement tax-free; it doesn’t get much better than that”
Danny Michael, CFP® explains in more detail what the Section 121 Exclusion is in this short video.
