Capital Gains Calculator for Home Sellers
See how much of a home sale's profit may actually be exposed to tax.
What This Calculator Does
Calculates the gain on a sale — proceeds minus selling costs and adjusted basis including capital improvements — then applies the primary-residence exclusion available under current tax rules to show the potentially taxable remainder.
Who Is This For
Owners selling a primary residence after a long hold, couples evaluating the effect of filing status on the exclusion, and sellers who want to understand the ownership-and-use test before listing.
How It Works
Enter the original purchase price, capital improvements made, expected sale price and selling costs, and filing status to see the gain, applicable exclusion, and taxable remainder.
Frequently Asked Questions
What is the primary-residence gain exclusion?
Current tax rules allow an eligible homeowner to exclude a set amount of gain on the sale of a primary residence, with a higher combined amount available to a married couple filing jointly, subject to ownership and use requirements.
What is the ownership-and-use test?
Eligibility generally requires having owned and lived in the home as a primary residence for a set portion of the years preceding the sale, and the exclusion is generally available only once within a set period.
What counts toward my cost basis?
Basis generally includes the original purchase price plus qualifying capital improvements, while routine repairs and maintenance typically do not count; keeping documentation for improvements is important since undocumented costs will not reduce the gain.
Does this apply to an investment or rental property?
No — the primary-residence exclusion applies to a personal residence; gain on an investment property is calculated differently, and depreciation taken over the holding period is generally recaptured separately.