Capital Gains Calculator for Home Sellers
Most of the profit on a primary residence may never be taxable. Find out how much of yours is.
What This Calculator Does
Works out the gain on your sale — proceeds less selling costs, less your adjusted basis including capital improvements — then applies the Section 121 exclusion for a primary residence, up to $250,000 for a single filer and $500,000 for a married couple filing jointly, to show what remains exposed.
Who Is This For
Owners selling a Miami primary residence after a long hold, couples deciding whether to sell before or after a change in filing status, and sellers who want to understand the exclusion test before they list rather than after they close.
How It Works
Enter your original purchase price, the capital improvements you have made, your expected sale price and selling costs, and your filing status. The calculator returns the gain, the exclusion you qualify for, and the taxable remainder.
Frequently Asked Questions
What is the Section 121 exclusion?
It lets a homeowner exclude gain on the sale of a primary residence — up to $250,000 for a single filer and $500,000 for a married couple filing jointly. For most sellers it covers the entire gain, which is why a great many home sales produce no capital gains tax at all.
What is the ownership and use test?
You generally must have owned the home and lived in it as your primary residence for at least 24 of the 60 months preceding the sale. The 24 months do not have to be consecutive, and the exclusion is generally available no more than once every two years.
What is my basis?
What you paid, increased by capital improvements — a renovation, an addition, a roof, impact windows — and adjusted by certain closing items. Repairs and routine maintenance do not add to basis. Keep the receipts: improvements you cannot document will not reduce the gain.
Does this apply to an investment property?
No. Section 121 covers a primary residence. Investment and rental property is a different calculation, and depreciation taken over the holding period is recaptured separately. Exchanging into another investment property is the usual planning route there.
What is the net investment income tax?
NIIT is an additional federal tax that can apply to investment income, including taxable capital gain, for taxpayers above certain income thresholds. Whether it reaches you depends on your total income and filing status, so confirm the specifics with your CPA before you plan around it.
Does Florida tax the gain?
Florida levies no personal state income tax, so there is no state capital gains tax on the sale. Federal treatment still applies, and if you moved from another state during the year, that state may have a claim on part of your income. Ask your tax advisor how the timing works.