Something to know if you are selling a home

Selling your home can bring more than moving expenses. If you make a profit, capital gains taxes may come into play. Many homeowners are surprised at how much these rules can affect their bottom line.

A few key points to know:

• You may qualify to exclude up to $250,000 in gains if single, or $500,000 if married and filing jointly, provided you meet the ownership and use requirements.

• Home improvements like additions and remodels increase your cost basis, which can reduce taxable gains. Simple maintenance or patchwork does not count.

• The tax impact differs if your property was your primary home, a rental, or inherited. Each scenario has its own rules.

• State taxes can still apply even when federal exclusions shield you from a portion of the gain.

Understanding these rules before you sell can save you thousands.