2024-25 Annual Tax Planning Guide For Individuals And Families
A tax planning guide for individual income tax planning and family tax planning strategies at 2024 year-end moving into 2025.
Are you aware of the significant tax break that allows you to exclude up to $250,000 ($500,000 if married) in capital gains on the sale of your primary residence? While this exclusion can be a major advantage, assuming it will always shield you from taxes can lead to costly errors. Here’s what you should understand:
The Essentials
To qualify for the capital gains tax exclusion when selling your home, you must clear three main hurdles:
Additional nuances to note:
When to Pay Attention
Certain scenarios warrant careful consideration:
Recordkeeping is Key
To ensure you make the most of these tax benefits and avoid potential pitfalls, it’s crucial to maintain thorough records. Keep detailed records of sales prices, original purchase documents, improvement costs, and any other relevant documents supporting your property’s capital gain calculation.
Conclusion
If you’re thinking about selling your home or have recently sold a property with a gain exceeding $250,000 ($500,000 if married), reach out to your Beaird Harris Tax Advisor. We’re here to help you navigate the complexities of tax law and to help avoid any surprises.
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A tax planning guide for individual income tax planning and family tax planning strategies at 2024 year-end moving into 2025.
A U.S. federal tax planning guide for businesses for tax year 2024, including M&A tax planning and ASC 740 tax planning strategies.
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