Capital Gains & Your Home Sale: MA 2022 Rules

Capital Gains & Your Home Sale: MA 2022 Rules

If you've owned your home in Needham or Belmont for a decade, you're likely sitting on significant equity. But how much will you keep after the sale?

The $250k/$500k Rule

Single Filers: You can exclude up to $250,000 of gain from your federal and state taxes. Married Filing Jointly: That exclusion jumps to $500,000. The Catch*: You must have lived in the home as your primary residence for 2 of the last 5 years.

Massachusetts Specifics

For gains exceeding the exclusion, Massachusetts generally taxes long-term gains at the flat 5% rate. Always consult with a tax professional before you list!

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