Introduction
If you’re thinking about selling your Florida home, one of the first questions that comes up is: Will I owe taxes on the sale? The answer depends on your situation, how long you’ve lived in the home, and how much profit you make from the sale.
In this article, we’ll break down the basics of capital gains tax, exemptions for homeowners, and what selling to a cash buyer like Palm Vista Property Group means for your bottom line.
Capital Gains Tax Basics
When you sell a home for more than you paid for it, the profit is called a capital gain. The IRS may tax this gain when you sell.
- Short-term capital gains apply if you owned the home for less than a year. They are taxed like regular income.
- Long-term capital gains apply if you owned the home for more than a year. These rates are usually lower.
The Home Sale Tax Exclusion
The IRS offers a big break for homeowners who sell their primary residence:
- You can exclude up to $250,000 in profit if you’re single.
- Up to $500,000 if you’re married filing jointly.
👉 To qualify, you must have:
- Lived in the home for at least 2 of the last 5 years.
- Owned the home for at least 2 of the last 5 years.
Do Florida Residents Pay State Taxes on Home Sales?
No. Florida does not have a state income tax, which makes it one of the most attractive places to own property. You only need to worry about federal taxes.
When Might You Owe Taxes?
You could owe taxes if:
- The profit exceeds the IRS exclusion.
- The property is an investment or rental, not your primary home.
- You don’t meet the 2-year ownership and residency requirements.
Tips to Minimize Taxes
- Track all home improvements (roof, kitchen remodel, HVAC). These costs can reduce your taxable gain.
- If the home is an investment property, consider a 1031 exchange to defer taxes by reinvesting in another property.
- Always consult a tax professional for personalized advice.
Selling to Palm Vista Property Group
When you sell directly to Palm Vista:
- ✅ You get a fair cash offer.
- ✅ You avoid realtor commissions, which saves thousands.
- ✅ You close fast, which can be helpful if you’re selling before tax deadlines.
We can’t eliminate taxes, but we can help you maximize what you keep by avoiding hidden fees and repair costs.
Conclusion
Not every Florida homeowner will owe taxes when selling their home. Thanks to the IRS exclusion and Florida’s no-state-tax advantage, many sellers walk away with all their profit tax-free.
👉 If you’re ready to sell your Florida home fast and want to keep as much money as possible, contact Palm Vista Property Group today at PalmVistaPropertyGroup.com.
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