{"id":460978,"date":"2026-04-28T08:57:35","date_gmt":"2026-04-28T12:57:35","guid":{"rendered":"https:\/\/www.houzeo.com\/blog\/?p=460978"},"modified":"2026-05-05T07:57:56","modified_gmt":"2026-05-05T11:57:56","slug":"long-term-capital-gains","status":"publish","type":"post","link":"https:\/\/www.houzeo.com\/blog\/long-term-capital-gains\/","title":{"rendered":"What is Long-term Capital Gains on House Sale?"},"content":{"rendered":"\n<figure class=\"wp-block-pullquote\"><blockquote><p class=\"highlight\"><strong>\u270f\ufe0f<\/strong> <strong>Editor&#8217;s Note: <\/strong>Realtor Associations, agents, and MLS&#8217; have started implementing changes related to the NAR&#8217;s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. <strong><a     href=\"https:\/\/www.houzeo.com\/blog\/nar-settlement\/\" target=\"_blank\" rel=\"noreferrer noopener\">Learn how NAR&#8217;s settlement affects home sellers<\/a>.<\/strong><\/p><\/blockquote><\/figure>\n\n\n\n<p class=\"margin-top-28\">Capital gains arise from the sale of a capital asset like bullion, a house, a vehicle, heavy equipment, stocks, etc. The IRS classifies these gains into long-term capital gains and short-term capital gains.<\/p>\n\n\n\n<p>Long-term capital gains on your residential house sale come with more favorable taxation. To be eligible for such <a     href=\"#Save-Long-term-Capital-Gains-Tax\">tax benefits and deductions<\/a>, you have to live at least 2 years in your house. <\/p>\n\n\n\n<p>If you want to earn the benefits of long-term capital gains on your house sale without a tedious process, sell your home fast on Houzeo. Houzeo lists your home on the MLS in 24 hours and you won&#8217;t have to pay listing agents&#8217; commissions.<\/p>\n\n\n\t<div style=\"display: block ;\" class=\"home-page-quick-listing-wrapper  content-ql-new-ui \" main-title=\"Sell Your Home Quickly on the MLS\" list-title=\"List FSBO on Your Local MLS\" list-item-1=\"Save thousands in commissions\" list-item-2=\"100% online platform\" list-item-3=\"5-star customer service\" ql-button=\"\" minimize=\"true\" sidebar=\"\" contact-title=\"\" contact-content=\"\" siteurl_qlb=\"https:\/\/www.houzeo.com\" cash-ql=\"false\"><\/div>\n\t<script>\t\t\n\n\t\tdocument.addEventListener(\"DOMContentLoaded\", function () {\n\t\t\tconst isMobile = window.screen.width <= 768;\n\n\t\t\t\/\/ Global flags to prevent multiple loads\n\t\t\twindow.quickListingCssLoaded = window.quickListingCssLoaded || false;\n\t\t\twindow.quickListingJsLoaded = window.quickListingJsLoaded || false;\n\n\t\t\tconst cssURL = 'https:\/\/www.houzeo.com\/css\/quick-listing-block-v3.css?v=9.8';\n\t\t\tconst jsURL  = 'https:\/\/www.houzeo.com\/js\/quick-listing-block-v3.js?v=9.8';\n\n\t\t\t\/\/ \u2705 Load CSS immediately on mobile only\n\t\t\tif (isMobile && !window.quickListingCssLoaded) {\n\t\t\t\twindow.quickListingCssLoaded = true;\n\t\t\t\tloadCSS(cssURL);\n\t\t\t}\n\n\t\t\t\/\/ \u2705 Define JS loader (and CSS for desktop)\n\t\t\twindow.quickListingJsLoadfn = function () {\n\t\t\t\tif (!window.quickListingJsLoaded) {\n\t\t\t\t\twindow.quickListingJsLoaded = true;\n\n\t\t\t\t\t\/\/ On desktop: load CSS here (lazy), since it wasn't loaded initially\n\t\t\t\t\tif (!isMobile && !window.quickListingCssLoaded) {\n\t\t\t\t\t\twindow.quickListingCssLoaded = true;\n\t\t\t\t\t\tloadCSS(cssURL);\n\t\t\t\t\t}\n\n\t\t\t\t\tloadScript(jsURL);\n\n\t\t\t\t\t\/\/ Remove listener after load\n\t\t\t\t\tdocument.removeEventListener(isMobile ? 'touchstart' : 'mousemove', window.quickListingJsLoadfn);\n\t\t\t\t}\n\t\t\t};\n\n\t\t\t\/\/ \u2705 Add the correct event listener\n\t\t\tconst quickListingEvents = isMobile ? ['touchstart'] : ['mousemove', 'scroll'];\n\n\t\t\tquickListingEvents.forEach((eventName) => {\n\t\t\t\tdocument.addEventListener(eventName, window.quickListingJsLoadfn, {\n\t\t\t\t\tpassive: true,\n\t\t\t\t\tonce: true,\n\t\t\t\t});\n\t\t\t});\n\t\t\t\n\n\t\t\t\/\/ \u2705 Helpers\n\t\t\tfunction loadCSS(href) {\n\t\t\t\tconst link = document.createElement('link');\n\t\t\t\tlink.rel = 'stylesheet';\n\t\t\t\tlink.href = href;\n\t\t\t\tdocument.head.appendChild(link);\n\t\t\t}\n\n\t\t\tfunction loadScript(src) {\n\t\t\t\tconst script = document.createElement('script');\n\t\t\t\tscript.src = src;\n\t\t\t\tscript.async = true;\n\t\t\t\tdocument.head.appendChild(script);\n\t\t\t}\n\t\t});\n\t<\/script>\n\t\n\n\n\n<div style=\"height:9px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"long-term-capital-gain\"><strong><strong><strong>What are Long-term Capital Gains and Taxes?<\/strong><\/strong><\/strong><\/h2>\n\n\n\n<p>Long-term capital gains stem from selling a capital asset if you held it for more than 12 months. It applies to your house sale as well. As a home seller, you will get tax exemptions for up to $500,000 on your long-term capital gains.<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>Long-term Capital Gains vs. Short-term Capital Gains<\/strong><\/h3>\n\n\n\n<div id=\"footable_parent_472634\"\n         class=\" footable_parent ninja_table_wrapper loading_ninja_table wp_table_data_press_parent semantic_ui \">\n                <table data-ninja_table_instance=\"ninja_table_instance_0\" data-footable_id=\"472634\" data-filter-delay=\"1000\" aria-label=\"long term capital gains vs short term\"            id=\"footable_472634\"\n           data-unique_identifier=\"ninja_table_unique_id_1906982717_472634\"\n           class=\" foo-table ninja_footable foo_table_472634 ninja_table_unique_id_1906982717_472634 ui table  nt_type_legacy_table selectable striped vertical_centered  footable-paging-right ninja_table_search_disabled ninja_table_pro\">\n                <colgroup>\n                            <col class=\"ninja_column_0 \">\n                            <col class=\"ninja_column_1 \">\n                    <\/colgroup>\n        <thead>\n<tr class=\"footable-header\">\n                                        <th scope=\"col\"  class=\"ninja_column_0 ninja_clmn_nm_long_term_capital_gains \">Long-term Capital Gains<\/th><th scope=\"col\"  class=\"ninja_column_1 ninja_clmn_nm_short_term_capital_gains \">Short-term Capital Gains<\/th><\/tr>\n<\/thead>\n<tbody>\n\n        <tr data-row_id=\"15946\" class=\"ninja_table_row_0 nt_row_id_15946\">\n            <td>When you hold the assets for more than 1 year.<\/td><td>When you hold the assets for less than 1 year.<\/td>        <\/tr>\n            <tr data-row_id=\"15947\" class=\"ninja_table_row_1 nt_row_id_15947\">\n            <td>Lower tax rates: 0%, 15%, or 20%.<\/td><td>Higher tax rates: 10%, 12%, 22%, 24%, 32%, 35%, or 37%.<\/td>        <\/tr>\n            <tr data-row_id=\"15948\" class=\"ninja_table_row_2 nt_row_id_15948\">\n            <td>Tax exemption of maximum $500,000 on homes.<\/td><td>No tax exemptions on a home sale.<\/td>        <\/tr>\n    <\/tbody><!--ninja_tobody_rendering_done-->\n    <\/table>\n    \n    \n    \n<\/div>\n\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"capital-gains-long-term\"><strong><strong>How to Calculate Long-term Capital Gains On a House Sale?<\/strong><\/strong><\/h2>\n\n\n\n<p>Follow these steps to calculate <a     href=\"https:\/\/www.houzeo.com\/blog\/capital-gains-home-sale\/\" target=\"_blank\" rel=\"noreferrer noopener\">capital gains on a house<\/a>:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Calculate the total cost of the property. This is the original purchase price plus any costs that you paid to make a permanent addition. <\/li>\n\n\n\n<li>Reduce the cost price by yearly depreciation. The net amount is your investment cost.<\/li>\n\n\n\n<li>Next, calculate the net sales amount. Exclude the selling expenses from the total sales proceeds.<\/li>\n\n\n\n<li>The difference between the basis and net sales is your capital gain. It can either be positive or negative. <\/li>\n\n\n\n<li>As per the IRS rules, classify it as short-term or long-term capital gains. The capital gains tax will apply as per your asset holding time and filing status. <\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\"><strong>Want to know Capital Gains Tax Rates?<\/strong><\/h3>\n\n\n\n<p>Skip to: <a     href=\"#capital-gains-taxes\">Long-Term Capital Gains Tax Rates in 2024<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"Long-term-Capital-Gains-on-Investment-Properties\"><strong><strong><strong><strong>Long-term Capital Gains on Investment Properties<\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n<p>When you invest in properties, you may have claimed depreciation as tax benefits. The IRS recaptures these benefits through &#8216;Unrecaptured Section 1250 gains&#8217; to prevent the double tax benefit on the same asset.<\/p>\n\n\n\n<p>Investment properties like rental and flipping homes attract a higher tax rate of <a     href=\"https:\/\/www.bankrate.com\/investing\/long-term-capital-gains-tax\/\" target=\"_blank\" rel=\"noreferrer noopener\">25%<\/a>. You can also <a     href=\"#Settle-the-Capital-Losses-on-a-House-Sale\">offset capital gains<\/a> on investment properties with capital losses on houses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"Save-Long-term-Capital-Gains-Tax\"><strong><strong>How to Save Long-term Capital Gains Tax on Real Estate Properties?<\/strong><\/strong><\/h2>\n\n\n\n<p><strong>\u00bb Jump to:<\/strong> <a     href=\"#long-term-capital-gains-tax\">Section 121 Exclusion<\/a> | <a     href=\"#Deductible-Expenses\">Deductible Expenses<\/a> | <a     href=\"#Capitalization-of-the-Improvement-Costs\">Capital Costs<\/a> | <a     href=\"#Save-the-Expenses-Receipts\">Save the Receipts<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\" id=\"long-term-capital-gains-tax\"><strong><strong>1. Section 121 Exclusion<\/strong><\/strong><\/h3>\n\n\n\n<p>If you have used the house as a primary residence for at least 2 years before the sale, you can claim these deductions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>$250,000, if you\u2019re single, or<\/li>\n\n\n\n<li>$500,000, if you\u2019re married and filing jointly. <\/li>\n<\/ul>\n\n\n\n<p><strong>What to save tax on investment properties?<\/strong> You can engage in&nbsp;<a     href=\"https:\/\/www.houzeo.com\/blog\/1031-exchange\/\" target=\"_blank\" rel=\"noreferrer noopener\">1031 exchanges<\/a>. This lets you reinvest your sale proceeds into a new investment opportunity. This way you can postpone your tax liability.<\/p>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ul class=\"check-minus-content-list\" style=\"background-color: #dff0ff; padding:20px; margin-left:-5px;\">\n\u270d\ufe0f <b>Remember:<\/b> It\u2019s not mandatory to live for 2 consecutive years. You can stay away for a very short period for work or travel. House flippers should beware of this as they could be subject to the short-term capital gains tax.<\/ul>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\" id=\"Deductible-Expenses\"><strong><strong>2. Deductible Expenses<\/strong><\/strong><\/h3>\n\n\n\n<p>You can deduct expenses from the sales that don&#8217;t add any asset to your home. You may incur these expenses in the course of selling your home such as:<\/p>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Appraisal fees<\/td><td>Escrow fees<\/td><td>Broker&#8217;s commission<\/td><\/tr><tr><td>Closing fees<\/td><td>Notary fees<\/td><td>Settlement fees<\/td><\/tr><tr><td>Transfer fees<\/td><td>Stamp taxes<\/td><td>Property taxes<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Other expenses on the house are not deductible even if you incur them to make your home saleable. For example, the cost of cleaning, repainting, or gardening services.<\/p>\n\n\n\n<p><strong>What if you have investment properties?<\/strong> You can deduct any repairs or renovation costs along with the <a     href=\"https:\/\/www.houzeo.com\/blog\/average-mortgage-payment\/\" target=\"_blank\" rel=\"noreferrer noopener\">average mortgage payments<\/a>. Maintain all documents such as&nbsp;bills and bank statements to prove the expenses in an audit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\" id=\"Capitalization-of-the-Improvement-Costs\"><strong><strong>3. Capitalization of Improvement Costs<\/strong><\/strong><\/h3>\n\n\n\n<p>Costs of additions in a house are part of <a     href=\"https:\/\/www.houzeo.com\/blog\/capital-improvement\/\" target=\"_blank\" rel=\"noreferrer noopener\">capital improvements<\/a>. Such expenses may include a room addition, window installation, water heater, etc. Add these expenses to the initial cost of the house. You can claim depreciation on it.&nbsp;<\/p>\n\n\n\n<p>You shouldn\u2019t misclassify these costs on your tax returns. For example, you bought a house for $500,000. You added a staircase and an extra restroom for $50,000 to appeal to buyers. This will make the total cost $550,000.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\" id=\"Save-the-Expenses-Receipts\"><strong><strong>4. Save the Expense Receipts<\/strong><\/strong><\/h3>\n\n\n\n<p>Keep a meticulous record of all the expenses on the house and maintain their receipts. Such record-keeping will help you claim deductions and reduce your tax liability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"Settle-the-Capital-Losses-on-a-House-Sale\"><strong><strong>How to Settle the Capital Losses on a House Sale?<\/strong><\/strong><\/h2>\n\n\n\n<p>When you sell a house for a price less than its original cost, you suffer a capital loss. In case of such cases, you can&#8217;t avail tax benefits and <a     href=\"https:\/\/www.houzeo.com\/blog\/tax-deductions-for-homeowners\/\" target=\"_blank\" rel=\"noreferrer noopener\">deductions<\/a> on long-term capital gains.  <\/p>\n\n\n\n<p>The IRS describes different ways to settle your capital losses on homes. You can adjust this loss against your capital gains on other assets. However, if you have income from other sources, you can only deduct the lesser of $3,000 or the net loss from the income.<\/p>\n\n\n\n<p>Say you have both capital losses and gains, adjust the losses against the gains. But, if the losses exceed your gains, adjust them against other income. If there is no other income, carry forward the losses to adjust them from the next year&#8217;s income.<\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"capital-gains-taxes\"><strong><strong><strong>What are Long-Term Capital Gains Tax Rates in 2024?<\/strong><\/strong><\/strong><\/h2>\n\n\n\n<p>Long-term capital gains tax rates and relevant income brackets for 2024 as per <a     href=\"https:\/\/www.bankrate.com\/investing\/long-term-capital-gains-tax\/#rates\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Bankrate<\/a> are:<\/p>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"footable_parent_462307\"\n         class=\" footable_parent ninja_table_wrapper loading_ninja_table wp_table_data_press_parent semantic_ui \">\n                <table data-ninja_table_instance=\"ninja_table_instance_1\" data-footable_id=\"462307\" data-filter-delay=\"1000\" aria-label=\"Long term capital gains tax rates\"            id=\"footable_462307\"\n           data-unique_identifier=\"ninja_table_unique_id_2630435983_462307\"\n           class=\" foo-table ninja_footable foo_table_462307 ninja_table_unique_id_2630435983_462307 ui table  nt_type_legacy_table selectable striped vertical_centered  footable-paging-right ninja_table_search_disabled ninja_table_pro\">\n                <colgroup>\n                            <col class=\"ninja_column_0 \">\n                            <col class=\"ninja_column_1 \">\n                            <col class=\"ninja_column_2 \">\n                            <col class=\"ninja_column_3 \">\n                            <col class=\"ninja_column_4 \">\n                    <\/colgroup>\n        <thead>\n<tr class=\"footable-header\">\n                                                                                        <th scope=\"col\"  class=\"ninja_column_0 ninja_clmn_nm_tax_rates \">Tax Rates<\/th><th scope=\"col\"  class=\"ninja_column_1 ninja_clmn_nm_single_person \">Single Person<\/th><th scope=\"col\"  class=\"ninja_column_2 ninja_clmn_nm_married_filing_jointly \">Married, Filing Jointly<\/th><th scope=\"col\"  class=\"ninja_column_3 ninja_clmn_nm_married_filing_separately \">Married, Filing Separately<\/th><th scope=\"col\"  class=\"ninja_column_4 ninja_clmn_nm_family_head \">Head of Household<\/th><\/tr>\n<\/thead>\n<tbody>\n\n        <tr data-row_id=\"15837\" class=\"ninja_table_row_0 nt_row_id_15837\">\n            <td>Nil<\/td><td>$0 to $47,025<\/td><td>$0 to $94,050<\/td><td>$0 to $47,025<\/td><td>$0 to $63,000<\/td>        <\/tr>\n            <tr data-row_id=\"15838\" class=\"ninja_table_row_1 nt_row_id_15838\">\n            <td>15%<\/td><td>$47,026 to $518,900<\/td><td>$94,051 to $583,750<\/td><td>$47,026 to $291,850<\/td><td>$63,001 to $551,350<\/td>        <\/tr>\n            <tr data-row_id=\"15839\" class=\"ninja_table_row_2 nt_row_id_15839\">\n            <td>20%<\/td><td>$518,901 or more<\/td><td>$583,751 or more<\/td><td>$291,851 or more<\/td><td>$551,351 or more<\/td>        <\/tr>\n    <\/tbody><!--ninja_tobody_rendering_done-->\n    <\/table>\n    \n    \n    \n<\/div>\n\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"benefits-of-long-term-capital-gains\"><strong>Bottom Line<\/strong><\/h2>\n\n\n\n<p>You can take advantage of favorable tax treatments under the IRS rules by maintaining the records of your house sale and possession period. Failure to calculate long-term capital gains on real estate and taxes can lead to penalties.<\/p>\n\n\n\n<p>If you&#8217;re looking to sell your primary residence where you&#8217;ve lived for more than 2 years, we advise you to sell it on Houzeo. With Houzeo you&#8217;ll sell <a     href=\"https:\/\/www.houzeo.com\/blog\/for-sale-by-owner-websites\/\" target=\"_blank\" rel=\"noreferrer noopener\">FSBO<\/a> and can possibly get the best price on your home sale.<\/p>\n\n\n\t<div  class=\"hfsWidget \" data-widget-title=\"List Your Property for a Flat Fee Now\" data-widget-list-item1=\"Save thousands in commissions\" data-widget-list-item2=\"100% online platform\" data-widget-list-item3=\"5-star customer service\" data-widget-type=\"seller2\" data-widget-vendor-type=\"inspector\" data-widget-state=\"us\" data-widget-city=\"\" data-widget-redirect-url=\"https:\/\/www.houzeo.com\/pros\" data-widget-redirect-text=\"View More Properties in the US\" data-widget-button-url=\"https:\/\/www.houzeo.com\" data-widget-button-text=\"\" data-widget-min-price=\"0\" data-widget-max-price=\"0\" data-widget-min-area=\"0\" data-widget-max-area=\"0\" data-widget-sidebar=\"false\">\n       \n    <\/div>\n\t<script>\n    document.addEventListener(\"DOMContentLoaded\", function() {        \n        if (!window.assetsLoaded) {\n            window.assetsLoaded = true;\n            var version = (typeof customData !== 'undefined' && customData.customVersion) ? customData.customVersion : '1.0';\n            loadScript('\/blog\/wp-content\/themes\/houzeo-new-design\/js\/hfs-widget.js?version=' + version);\n            loadCSS('\/blog\/wp-content\/themes\/houzeo-new-design\/css\/hfs-widget.css?version=' + version);\n        }    \n    });\n\t\t\n\t<\/script>\n\t\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\"><strong>FAQs<\/strong><\/h2>\n\n\n\t\t<div class=\"wp-faq-schema-wrap wp-faq-schema-accordion\">\n\t\t\t\t\t\t<div class=\"wp-faq-schema-items\">\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tCan I deduct the closing costs of a house sale from capital gains?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>Unfortunately, no. The only closing costs which are tax-deductible are property taxes and mortgage points. A person buys <a href=\"https:\/\/www.houzeo.com\/blog\/mortgage-points\/\" target=\"_blank\">mortgage points<\/a> to reduce interest rate. The mortgage payoffs of 3%-6% are not deductible as closing costs.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tDo I have to pay state taxes on capital gains?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>States too levy taxes on capital gains in addition to the federal income taxes. The rates may differ or be the same as those of the federal government. <\/p>\n<p>Also, the states of Arizona, Wyoming, Nevada, and Texas levy different tax rates on capital gains. We recommend that you check the applicable effective rates, <a href=\"https:\/\/www.houzeo.com\/blog\/tax-deductions-for-homeowners\/\" target=\"_blank\">tax deductions<\/a>, or credits in your local address.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tHow many years should I live in my house to claim long-term capital gains?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>If you want to save taxes on long-term capital gains, you should own the property for at least 2 years in the previous 5 years. Those 2 years need not be consecutive and can include work related stays and vacations. <\/p>\n<p>You can claim a heavy <a href=\"#long-term-capital-gains-tax\">exemption under Section 121<\/a> from your taxable gains, if you fulfill this condition.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tCan I claim a tax deduction if I have invested in rental houses?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>Yes, you can claim <a href=\"https:\/\/www.houzeo.com\/blog\/principal-and-interest\/\" target=\"_blank\"> mortgage interest<\/a> payments, depreciation, and property taxes from every year's tax liability. <\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tWhat is the capital gains tax rate for 2023 and 2024?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>The <a href=\"#capital-gains-taxes\">long-term capital gains tax rate<\/a> for 2023 and 2024 stands at 0%\u201320% depending on one's tax bracket. Meanwhile, the tax brackets for short-term capital gains are 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\n","protected":false},"excerpt":{"rendered":"<div class=\"new-excerpt\"><p class=\"small-desc\">Your residential house sale attracts long term capital gains. Consider the right holding period and filing status to avail of the tax deductions from capital...<\/p><\/div><div class=\"reading_date\"><span class=\"readtime\">6 mins read<\/span><span class=\"date\">Apr 28, 2026<\/span><\/div>","protected":false},"author":218,"featured_media":464324,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46226],"tags":[31753,31751,31750,31748,31747,31754,31749,31752],"class_list":["post-460978","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-seller","tag-federal-capital-gains-tax","tag-how-much-is-cgt","tag-long-term-capital-gains-tax-rates","tag-ltcg-tax-rate","tag-real-estate-capital-gains-tax","tag-selling-stock-taxes","tag-short-term-vs-long-term-capital-gains","tag-what-is-the-long-term-capital-gains-tax-rate"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Long-term Capital Gains on House Sale in 2024 | Houzeo<\/title>\n<meta name=\"description\" content=\"Long-term capital gains arise when you sell your house. 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