What Are the Tax Implications of Selling Your Home in Fort Lauderdale?
Selling your Fort Lauderdale home? Wondering how it will affect your taxes?
You’re not alone. While selling a home can bring financial freedom or fund your next purchase, it’s important to understand how it may impact your tax situation—especially in a hot market like Fort Lauderdale, where rising home values could mean significant gains.
Wach it here!
💰 Do You Have to Pay Taxes When Selling Your Fort Lauderdale Home?
The short answer: maybe—but not always.
Many homeowners qualify for an IRS capital gains tax exclusion on the sale of their primary residence, but certain rules apply.
✅ Capital Gains Tax Exclusion Rules
The IRS allows you to exclude up to:
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$250,000 of capital gains (single filer)
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$500,000 of capital gains (married filing jointly)
To qualify, you must:
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Own the home for at least 2 of the last 5 years
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Use it as your primary residence for at least 2 of those 5 years
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Not have claimed this exclusion on another home sale in the past 2 years
📊 Example: Fort Lauderdale Home Sale
| Scenario | Taxable? |
|---|---|
| Sold home after 3 years, gained $200,000 | No (within exclusion limits) |
| Sold vacation home with $300,000 gain | Yes (not primary residence) |
| Primary home, gain exceeds exclusion | Yes (only excess is taxable) |
🏖️ Florida’s Tax-Friendly Advantage
Here’s the good news for Fort Lauderdale homeowners:
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No State Income Tax: Florida doesn’t tax income, including capital gains.
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Homestead Exemption: Reduces property tax while you own.
You’ll only need to consider federal capital gains taxes if your profit exceeds the exclusion limits.
📝 Other Tax Factors to Consider
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Selling Costs: Real estate commissions, closing costs, and improvements can reduce your taxable gain.
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Depreciation Recapture: Applies if you’ve rented out the property.
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1031 Exchange: For investment properties, defers taxes if you reinvest in a “like-kind” property.
⚖️ Consult a Tax Professional
Every situation is unique. Before selling, speak with a qualified CPA or tax advisor who understands Florida and federal tax laws.
🌟 Melissa Carbonell’s Pro Tip
"As a REALTOR in Fort Lauderdale, I help clients estimate potential tax implications and connect them with trusted local tax professionals to plan ahead."
💬 Ready to Sell Your Fort Lauderdale Home?
Selling smart means understanding your full financial picture. For expert guidance and a seamless selling experience, contact Melissa Carbonell, REALTOR, today.
📞 Call now for a personalized home valuation and selling plan.
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