You have realized the American dream. You've bought your own home. You worked hard to accumulate the funds to get your down payment and you've reaped the rewards of home ownership. You've raised your family in your home and now they have homes of their own. The home that you've come to love is now to big for you. You realize that you've accumulated too much stuff over the years and want to move. Or maybe you bought your house at a great deal and now someone has made you an offer you simply can't refuse. How can you possibly sell your house without incurring the home capital gains tax?
The capital gains tax was created by the federal government to provide money to fund the budget. They want as many people to realize the dream of home ownership as eventually they will have to sell it or pass it along to a heir. Either way at some point and time in the future taxes will be generated by this. They simply have to wait. Can you eliminate or prevent this from happening?
If you know that you are planning on selling your home in the future you should get competent advice to determine the best course of action. Laws that are in effect today may not be when you get ready to sell your house. And the amount that is exempt from taxes could increase or decrease. It all depends on what our representatives and senators have in place for us at that time. You don't want to do anything on your own. Sure there are plenty of books that you can get but your best bet is to consult with someone who knows you and your situation. You don't want to pay any additional taxes if possible. They are there to help you and it is their job to stay up to date on the latest regulations and rules.
Anytime you are planning to sell your home it is a major decision. You don't want to do anything in haste or hapazardly. Plan everything as far in advance as you possibly can. Get your own personal tax accountant that will advise you on how you can reduce the largest amount of home capital gains tax. Yes it will be a hefty fee, but the price that you pay will be reimbursed in the savings to your pocket.