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Legal way to avoid paying $500Kin taxesMortgage Basics
So let’s say for example you bought a house for 100,000 and now you sell it for 300,000. So let’s say you have a $200,000 in profits. So technically to pay taxes on but there is a rule if you lived in that in your own home for a minimum of two years, you don’t need to pay the taxes for a certain amount. So if you are married there’s a $500,000.
The discount basically that if you made 500,000 or lower, you’re not going to pay taxes on that profit. If you’re single at the maximum is 250,000. So next time you plan him to sell, remember that if you made this amount of money, you don’t need to pay taxes on it.