Insider Discussion – Understanding the Risks of Capital Gains
Insider Discussion – Understanding the Risks of Capital Gains
Thinking of selling? Here’s how to avoid a tax nightmare!
Capital gains taxes can eat into your profits, but smart moves like reinvesting or living in the home long enough can help. Need a breakdown? Let’s discuss!
I hope this information was helpful! If you are considering buying or selling a home, I would love to talk to you. I am a seasoned agent with over 24 years of experience in the local real estate market. I would love to be able to get you the financial result you desire from your current home to get you in to that Dream Home! Don’t hesitate to call me anytime at 260-579-1516 or you can email me at mike@mikearchbold.com.
🏡 What Is Capital Gains Tax?
When you sell a home for more than you paid for it, that profit is called a capital gain. Uncle Sam may want a piece of that pie, especially if you haven’t owned or lived in the home very long.
But here’s the good news: there are smart strategies to reduce or even eliminate that tax burden.
✅ Tip #1: Live in the Home for At Least 2 Years
If the property has been your primary residence for at least 2 of the last 5 years, you may qualify to exclude up to $250,000 of capital gains from taxes if you’re single—or up to $500,000 if you’re married filing jointly.
That’s a HUGE benefit!
💡 Tip #2: Reinvest Wisely
If you’re not selling your primary residence, and instead you’re cashing in on an investment property, you might consider a 1031 exchange. This lets you defer capital gains taxes by reinvesting the proceeds into another “like-kind” investment property. It’s a bit more complex, but it’s a powerful tool for investors.
📁 Tip #3: Keep Great Records
Improvements like a new roof, kitchen remodel, or HVAC upgrade may increase your cost basis, which reduces your gain—and your tax bill. But you need the documentation to prove it. Keep those receipts!
🧠 Tip #4: Talk to a Pro
Tax laws are complicated and always changing. Before you list your home, it’s smart to consult with a real estate agent and a tax advisor who can walk you through your options. The right advice can save you thousands.
Ready to Learn More?
Avoiding a tax nightmare starts with the right information. If you’re planning to sell and want a personalized breakdown of how capital gains could affect your situation, drop a “TAX” in the comments or reach out directly. I’m happy to help connect you with the right resources and strategies.
Why Does RE/MAX Results Stand Out Among the Competition?
Simply put: Relationships. We pride ourselves not only in our professional service but more importantly in the personal touch we bring to our business. Has an agent/lawyer/contractor/vendor ever treated you like you were just another paycheck? The reason our clients come back time and again and refer all their friends and family to us is because they know we are part of the family.
Genuinely caring about the people we serve enables us to do things other agencies can’t. Rest assured, we will ALWAYS have your best interest at heart and work vigorously to get you the best deal possible on your home or business. The relationships we build with our clients enable us to work 100% by referral.
The reason we are able to give top notch service to our clients is because our clients refer us a constant stream of quality family and friends to assist in their real estate needs. While other agents are out making cold calls and chasing “potential” leads, we are freed up by our referral base to service our clients like no other broker can. We are never too busy for your referrals!
Want to experience the difference for yourself? Call or text me today at 260-579-1516.
“Professional Service with a Personal Touch“
We’re Here To Help
Are you or someone you know considering a home purchase? Don’t hesitate to call or text me, Michael Archbold, at 260-579-1516 and I will connect you with the best mortgage professionals in the business who can get you your score, discuss ways to improve it if necessary, and put you on the path to home ownership. Click here to read more about our Buyer Services. Click here to browse listings NOW! Looking to sell your home? Call today to set up an appointment to begin developing your customized marketing plan. Click here to read more about our Seller Services.
Hoosier Home Listings by RE/MAX Results is a full service real estate Web site serving Northeast Indiana. We assist residential and commercial clients in locating, buying, and selling real property in the State of Indiana including but not limited to the counties of Allen, Huntington, Wells, Adams, Whitley, Wabash, Kosciusko, Noble, Dekalb, Lagrange, Steuben and cities including Fort Wayne, Decatur, Bluffton, Huntington, Warsaw, Columbia City, Butler, and Angola. RE/MAX Results is an Equal Housing Opportunity company.
Hoosier Home Listings – Insider Discussion – Understanding the Risks of Capital Gains…
… brought to you by Michael Archbold, Hoosier Home Listings, and RE/MAX Results.
The consummate professional, Michael Archbold (Associate Broker, REALTOR, ePro) brings a diversified background to the world of real estate. Born and raised in Fort Wayne, Mike graduated Wayne High School in 1992. He received bachelors degrees in Accounting in 1997 from Indiana University and Information Technology in 2005 from Indiana Wesleyan University. Mike comes to Re/MAX with more than 20 years of experience in sales and accounting. He began his career in real estate in 2000 as an investor.
