An ” over-55 house sale exemption,” a noun in actual property terminology, permits owners aged 55+ to exclude a portion of their house sale revenue from capital beneficial properties taxes. As an example, if a 60-year-old house owner sells their home for $500,000 and has lived there for the previous 5 years, they may very well be eligible to exclude as much as $250,000 of the acquire.
This exemption, established in 1997, holds nice significance for seniors in search of to downsize or relocate with out incurring hefty tax burdens. Advantages embody potential tax financial savings, elevated monetary flexibility, and the facilitation of a smoother transition into retirement.
