Selling a Second Home? 2 Things to Know
It's definitely a good time to sell a home. In fact, according to ATTOM Data Solutions, the average home seller made a whopping $94,000 in profits last year. That's up 45% from 2020 and 71% compared to just two years ago.
For those selling a primary residence, these profits were mostly money in the bank. Sellers of second homes and vacation properties, though? That's a different story. That's because gains on second homes are taxed differently than those on primary homes. With a primary residence, you can exclude capital gains up to a certain amount. Sellers of second homes and other investment properties, on the other hand, have to pay taxes on those profits -- and often at a hefty price.
Are you considering selling your second home or vacation property? Here's what you need to know.
Source Fool.com
