Is the Money From Selling Your Home All Taxable?

by Alessandra Imanabadi

By Alessandra Imanabadi · Nationwide Fine Homes

No. Your closing proceeds and your taxable gain are different calculations.

Your mortgage payoff affects the cash you receive. It does not, by itself, determine the gain on the sale.

The calculation generally considers the sale proceeds after eligible selling expenses and your adjusted tax basis.

Your improvements deserve a proper review

Years of qualifying improvements can matter. Gather your original closing statement and records for additions, substantial renovations and other work.

Ordinary repairs and maintenance generally do not receive the same treatment as improvements. Some work may qualify differently when completed as part of a larger project. Your CPA should determine what belongs in your calculation. IRS Publication 523.

Also have the CPA review whether you qualify for a home-sale exclusion and any limitations that apply.

The mistake is assuming every dollar received is taxable—or assuming every dollar spent on the home can be deducted.

Understand this before building the move around an assumed tax bill.

Your agent contributes the realistic sale range, anticipated selling expenses and replacement-home options. Your CPA supplies the tax analysis.

Alessandra can help assemble the property side so your decisions are based on connected information. You remain free to explore the possibilities without deciding to sell.