A rise in home values has led to an increase in the number of homeowners unexpectedly facing capital gains taxes when selling their properties. Despite a generous capital gains tax home exclusion of up to $500,000, more homeowners are discovering that the profits from the sale of their homes surpass the tax-free limit.
Data reveal that last year, approximately 8% of home sales resulted in gains that exceeded the home exclusion threshold. That is more than double the percentage five years ago, according to a report from CoreLogic, a company that provides consumer information and analytics.
