What are real estate capital gains and how are they taxed in IRS?

Capital gains are the profits obtained from the sale of a property, when the selling price is higher than the acquisition price, subject to IRS taxation. The amount to be paid depends on the difference between the purchase price and the selling price, after certain deductions, such as expenses for work or fees. There are situations of exemption, in case of reinvestment of the profit on the purchase of a new own and permanent housing, but the rules vary.

In 2024, facing the sale of properties in 2023, two regimes coexist: one for those who reinvest in their own permanent housing, and another more comprehensive for cases that do not involve immediate reinvestment.

Understand better what real estate capital gains are and how these situations of exemption from IRS taxation work with these related articles:

1. I sold a house in 2023: How much do I pay in capital gains in 2024?
2. IRS on capital gains: Government wants to end the time limit on exemption.
3. Sell house? Know what changes in the IRS exemption regarding capital gains.
4. Real estate capital gains: Two regimes in force in 2024.