What is Capital Gains?
When you sell you home at a profit the IRS considers the profit “capital gains” rather than “ordinary income” such as the income you receive in your paycheck. Capital gains are taxed different than ordinary income. So, if you purchased the house for $100,000 and you sell it for $500,000 you have earned $400,000 in capital gains.
Are there any exclusion for Capital Gains on a home?
