Selling your mom’s old house in Memphis can feel overwhelming. Along with the memories tied to the home, you also need to understand how the capital gains tax in Memphis works. The profit you make from the sale—known as capital gains—can affect how much money you actually keep. In this guide, we’ll explain how selling an inherited or old family home impacts your taxes, and how you can make the most of the sale.
Selling your mom's house in Memphis involves both emotional and financial considerations 🏡, especially regarding capital gains tax. This infographic breaks down the essential information you need to navigate the process smartly and keep more of your profit.
📌 Key Highlights:
💰 What Are Capital Gains?
Profit from selling the house above its original purchase price.
📑 Tax Implications:
- Inherited Properties: Qualify for a "step-up in basis," resetting the value to market price at inheritance, reducing taxable gain.
- Primary Residence Exclusion: Exclude up to $250,000 (single) or $500,000 (married) of profit if you lived there 2 of the last 5 years.
- Tennessee State Tax: No state capital gains tax! Only federal taxes apply.
📊 Deductions & Strategies:
- Subtract selling costs (realtor fees, closing costs) and home improvements from taxable gain.
- Consider a 1031 Exchange to defer taxes by reinvesting proceeds into another property.
Read More - https://www.spencerbuyshouses.com/blog/selling-moms-old-house-memphis-capital-gains-tax/
