22 Jun Will I have to pay taxes on the sale of my home?

Q. I am a New Jersey resident selling my primary residence home for a profit of less than $250,000. What taxes do I pay, if any?
— Seller

A. Congrats on the sale of your home.

New Jersey conforms to the federal rules on the capital gains exclusions allowed on the sale of residences.

“This law states that when you sell your principal residence, the gain is not included in your gross income, up to a maximum of $250,000 for an individual or $500,000 for taxpayers filing jointly,” said Gail Rosen, a Martinsville-based certified public accountant.

To qualify for the exclusion, she said you must have used the property as your principal residence for an aggregate of two years during the five-year period ending with the sale of the property.

“You might qualify for a reduced exclusion if the sale of your home was due to a change in your employment, health, or unforeseen circumstances,” she said.

Don’t forget that you can also deduct capital improvements from your profit on the sale.

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This story was originally published on June 22, 2020.

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