In this Episode of the Secure Your Retirement Podcast, Radon and Murs discuss the often-confusing world of taxes on sale of home and how different tax rules apply when selling your home versus selling rental property investments. Joined by Director of Financial Planning and Tax Strategist Taylor Wolverton, the conversation breaks down capital gains tax explained in a simple and practical way so retirees and pre-retirees can better understand how home sale taxes may impact their financial future. Whether you are downsizing, relocating, or considering selling rental property as part of your retirement planning strategy, this episode highlights the importance of understanding real estate taxes before making a major financial move.

Listen in to learn about home sale exclusion rules, depreciation recapture, capital improvements, and how Tax on home sale calculations can dramatically affect your retirement income and long-term financial security. Taylor explains how proper tax planning retirement strategies can help reduce unnecessary taxes and support your goals for retiring comfortably and helping to secure your retirement. If you are focused on financial planning for retirement, creating a retirement checklist, or trying to plan for retirement with confidence, this episode offers valuable insights into Retirement Planning and planning retirement around real estate decisions.

In this episode, find out:

How the IRS determines whether a property qualifies for the home sale exclusion
The difference between home sale taxes for a primary residence versus Rental property taxes
Why Capital improvements can help reduce your Capital gains tax when selling your home
How Depreciation recapture works when selling rental property
Important Retirement tax planning strategies to consider before selling real estate in Retirement

Tweetable Quotes:

“The IRS allows married couples filing jointly to exclude up to $500,000 of gain when selling a primary home if they meet the ownership and use tests.” — Radon Stancil

“Depreciation on rental property is a tremendous tax benefit while you own the property, but many people forget about depreciation recapture when they sell.” — Taylor Wolverton

Resources:

If you are in or nearing retirement and you want to gain clarity on what questions you should be asking, learn what the biggest retirement myths are, and identify what you can do to achieve peace of mind for your retirement, get started today by requesting our complimentary video course, Four Steps to Secure Your Retirement!

To access the course, simply visit POMWealth.net/podcast.