How are capital gains taxed?

Short-term capital gains on real estate sold in a year or less are taxed at your ordinary income tax rate. Long-term capital gains on homes sold after a year of ownership are taxed at 0%, 15% or 20%. It can feel great to get a high price for your home, but in some cases, the IRS may want a piece of the action.

Are long-term capital gains taxable in Virginia?

Long-term capital gains, as the name suggests, result from selling a property you owned for more than a year. Long-term capital gains tax rates are almost always lower than short-term capital gains. That is why many experts advise holding onto the property for a longer period before selling. When Is a Home Sale Fully Taxable Virginia?

Can I avoid capital gains taxes during a home sale in Virginia?

The IRS is kind enough to offer some options to reduce or avoid capital gains taxes during a home sale. This differs depending on the type of Virginia property you own, your income, and your filing status. You can be eligible for a capital gains tax break under Section 121 Exclusion if you sold a primary residence.