Alaska Home Sales Taxes (2023)

Taxes when selling a home in Alaska

Alaska Home Sales Taxes (1)

When selling a home in Alaska, whether it's a family residence or investment property, expect the IRS to collect capital gains tax on the gain. Failure to declare and pay this tax can lead to fines, penalties, or worse, criminal proceedings.

Home sellers typically pay capital gains tax when the value of their property is significantly assessed. But due to the Taxpayer Relief Act of 1997, many are exempt from paying. In fact, both single and married homeowners may be eligible for this tax break if they meet certain criteria.

If you are planning to sell a home and are concerned about the tax consequences, this is the perfect read for you! Here we take a look at the essentials of capital gains taxes, including their rate, how to avoid them, partial exclusions, and more!

What are Alaska Capital Gains Taxes?

Alaska Home Sales Taxes (2)

capital gains tax isthe tax you owe on your capital gains(Gain) from the sale of a fixed asset or an investment such as a house.You can calculate this bySubtract the cost basis or purchase price of your Alaskan home and all expenses incurred in the sale from the final sale price.Please note that the final sale price may differ from the estimated market value of your home.

Any gain from the sale of your home must be reported to the Internal Revenue Service when you file your tax return that same year. Because capital gains are tied to the value of your property,any substantial appreciationmay result in a higher capital gains tax.

Short-term capital gains

Short-term capital gains are the result of the sale of Alaska property that you have ownedLess than a year.It is taxed in a similar way to ordinary income, that is, the tax ratesIt depends on your marginal tax bracket.

Long-term capital gains

Long-term capital gains, as the name suggests, result from the sale of a property that you have ownedmore than a year.

Long-term capital gains tax rates arealmost always lowerthan short-term capital gains. Therefore, many experts advise holding the property longer before selling it.

When is selling a home in Alaska fully taxable?

Alaska Home Sales Taxes (3)

Although most Alaska homeowners are eligible for a capital gains tax exemption under tax law, there are still cases where a home is fully taxable. Here are some example situations.

  • The house isnoPrincipal residence of the seller.
  • The owner sold another house.within two yearsfrom the date of sale of the home and in this case you have already claimed the exclusion of capital gains.
  • The owner of the house has to payforeign taxes.
  • The property was purchased through1031 olike-minded exchange.
  • Homenot owned or usedby the seller as the principal residence for at least two years of the last five years prior to the sale of the home.

What is the Alaska Real Estate Capital Gains Tax?

Alaska Home Sales Taxes (4)

The capital gains tax rate depends on thethe seller's tax status, income tax bracket, years of ownership of the home in Alaska, and whether the home was primary/secondary or rental.

Generally, the price ofshort-term capital gains tax is between 10% and 37%afterseven federal tax bracketsfor ordinary income in the United States.

This differs primarily based on income and filing status, whether you are single, head of household, married together, or separated. The higher capital gains tax applies to married individuals filing jointly.

Note that short-term capital gains may be taxed more than regular income if they place your total taxable income in the higher marginal tax bracket.


As for the long-term capital gains tax rate, it used to be very similar to the short-term rate; However theTax Cuts and Jobs Actchanged this in 2018.

Unique capital gains tax brackets have been created that change from year to year. However, you can count on thatthe long-term capital gains tax rate is between 0% and 20%.

Do you have to pay capital gains tax on Alaska rental homes?

Alaska Home Sales Taxes (5)

Y.You must pay capital gains tax on a rental property.Similar to a primary residence, if you have owned the rental for less than a year, the sale would be taxed as ordinary income.The capital gains tax rate is also 37%.

If I owned the property long enough, I would paybetween 15% and 20% long-term capital gains tax.This depends on your marital status, income, and your household's cost base. If you have previously claimed a depreciation deduction, this rate can be as high as 25%.

It is important to clarify that the capital gains tax on a leased or investment property does not have the same exceptions as a single-family home or main residence. In most cases, getting capital gains tax relief on a lease sale in Alaska is more difficult.

How do I avoid capital gains tax when selling real estate in Alaska?

Alaska Home Sales Taxes (6)

While the size of your capital gains tax bill can be truly daunting, there is still a way around it.

The IRS is kind enough to offer some options to reduce or avoid capital gains taxes when selling a home. This depends on the type of Alaska property you own, your income, and your marital status.

primary residence

You may be entitled to a capital gains tax creditSection 121 Exclusionif you have sold a primary residence. This exemption can only be claimedonce every two years.

Individual sellers may exempt the first250.000 $or your capital gains, while married taxpayers filing jointly can cope with500.000 $Release.

For example, if you are an individual taxpayer who bought your home for $500,000 (based on cost) and sold it for $650,000, the $150,000 capital gain is tax-free because it falls below $250,000.

of course they existcertain requirementsTo qualify for this exemption:

  • You must own the property for at least two years.
  • You have lived in the property for at least two years within the five years immediately preceding the sale of the home.
  • You have not excluded the gain from another home sale within the 2 years prior to this sale.

Keep in mind that youYou do not have to live on the Alaskan property two years in a row.If you lived in the property for one year, rented it for two years, and lived in it for another year, you may still be granted a capital gains tax exemption.

For married applicants, at least one spouse must have owned the property for at least 2 years within the five years prior to the sale of the home.

Rent or additional property

The capital gains tax exemption for the sale of an investment property and any additional property isnot exactly comparable to a primary residence.In most cases, only a small amount can be withdrawn, so the investor should consider skipping it.

Section 121: Primary Residence Exclusion

CanMake Alaska Rental Property Your Primary Residencetwo years before selling it. This way you can use the § 121 or the main residence exclusion.

Please note, however, that if you are adepreciation deductionon capital gainsobtained before May 6, 1997,You are not entitled to this capital gains exclusion.

Also, if you do so now, you will lose your primary residence status for your first home. This can be a problem if you also want to sell this property in less than two years and you haven't lived in it for 24 months.

1031 exchange

Another tactic used by many investors to avoid high capital gains taxes when selling a rental property is to reinvest their earnings in a similar property. This is called the1031 exchangeor similar exchange. for this arrangementCapital gains tax can be deferred.

(Video) How Alaska Taxes Retirees

According to the IRS, individuals, corporations, trusts, limited liability companies (LLCs), and partnerships that own investment property can benefit from this postponement.

Alaska replacement grant must be identified in writingwithin 45 days of installment purchaseand the exchange should be completed180 days after salethe first investment property.

The process of claiming the 1031 exchange can be extremely complicated given the time constraints. You may want to work with a 1031 exchange company to speed up the process and avoid potential mistakes.

opportunity zone

when you investlow-income communities (opportunity zones)Under the Tax Cuts and Jobs Act of 2017, you can increase the original cost of ownership after the first 5 years and all your gains after 10 years are considered tax-free.

deduct expenses

Even if you have been granted an exclusion or exemption, you may still need to pay some capital gains tax when selling an investment property in Alaska.

what you can do isReduce your taxes on capital gainsfurther by reducing the amount of your taxable gain.

Here are some deductions that may qualify:

  • Closing costs of the sale
  • Home renovation or improvements, such as remodeling the kitchen or adding a new room
  • repair costs
  • Loss of income because tenants cannot pay rent
  • Costs of evicting a tenant or finding a tenant (includes advertising, attorney, and other related professional fees)
  • Certain selling expenses such as title insurance, handling fees, etc.

For these deductions to be taken into account, you must stick to themreceipts, invoices, credit card statements, invoices,and other documents that may support your claims.

sale in payments

In Alaska, to reduce the taxable gross income from the sale of a rental apartment or vacation home, the seller may elect an installment sale.part of the profit is deferredTherefore, part of the capital gains tax is also deferred.

What is a partial tax exemption on home sales in Alaska?

Alaska Home Sales Taxes (7)

If you don't qualify for the 121 primary residence exclusion, or still owe taxes after a few exceptions, you can stillpartial exemption from sales tax.

This can be given to you if you have onegood reason to sell house in alaska,You are not subject to expatriate tax and have not applied for an exclusion in the last 2 years

Here are some of the "good reasons" the IRS considers when issuing a partial exclusion on home sales:

Health related move

  • You moved because you have toreceive a diagnosis or treatmentfor themselves.
  • You moved because you have toto provide personal or medical care to a family member.
  • Your doctor recommended itMoving places for treatment. This also applies to your spouse or a family member who lives with you.

Job Related Relocation

  • you weremoved to an office 50 miles awayfar from home.
  • OfThey were rented 50 miles awayfrom home.
  • One of the above casesapplies to your husband/wifeor someone who lives in the same house.

unforeseeable events

  • His house was destroyed by onenatural or man-made disaster or an act of terrorism.
  • your house wasdoomed or destroyedfor some reason.
  • You, your co-owner, spouse, or anyone living in the homedeceased, divorced, separated, born to twins, unemployed, etc.

other circumstances

Even if you haven't exactly experienced the above situations that led you to sell your Alaska home, you may still qualify for an exception.

that is if you canprovethat the main reason for selling the house is for health, work or unforeseen reasons.

How to Report Home Sales Proceeds to the IRS Alaska

Alaska Home Sales Taxes (8)

To report a sale of real estate, you must fill out and submit the formFormulate 1099-SIRS. This form is used when the house sells anon-excludable gainand is issued byGraduate company, real estate agency or mortgage bank.

For example, if you meet the IRS requirements for an exclusion, you must still notify your Alaska real estate agent by February 15 following the year of sale.

This is what the IRS is consideringNon-reportable real estate transactions:

  • The sale price of the property isless than $250,000 for singles and $500,000 for married couples filing together.The agent must obtain certification that the seller actually meets the primary residence requirements.
  • The transaction is awithout saltbut a gift
  • The transaction is completesatisfy a lien
  • The seller or person transferring ownership is aGovernment sector, a corporation or a transferor of exempt volume
  • The total consideration of the transaction is$600 or less

Special Circumstances: Military Personnel and Divorce Alaska

There are special rules for divorced couples, military personnel, and government officials that can help them claim full or partial exemption from Alaska capital gains tax.

(Video) Alaska Tax Sales - Tax Deed

military personnel and government officials

Alaska Home Sales Taxes (9)

Some government officials and military personnel serving longer terms of service with their spouses may extend the five-year period.up to 15 years.

As long as the government official or military personnel lived2 yearsin the property for a period of 15 years, they may also receive an Alaska capital gains tax benefit. This is $250,000 for a single applicant and $500,000 for a married couple filing jointly.

This also applies to members of theForeign Service and Secret Services.


To qualify for the occupancy requirement, the titled spouse can count the years the home was in existenceProperty of the ex-spouse.

If there is still a legal owner and the court grants use of an apartment by both parties in the separation agreement, the spouse who does not stay in the apartment can still prove the days the other lived there.

death of a spouse

If one of the spouses has died and the surviving spouse has not remarried,the period during which the deceased lived and the property and ownership thereofcan still be considered for proof of ownership and use.

Alaska Related Questions

Do you pay capital gains when you lose money on the sale of a home?

Therefore, losses on the sale of a principal residence cannot be treated as a capital still have to pay tax.

If your capital losses exceed your earnings, the additional loss amount you can claim is $3,000 for single claimants and $1,500 for married claimants. If you own a rental, a better option would be to offset capital gains against capital losses.

Will paying my mortgage and property taxes reduce my earnings?

No. Your property taxes or property taxes and mortgage payments during a saleit will not reduce your benefit.Remember that Alaska capital gains taxes are calculated by subtracting the purchase price from the sale price.

Therefore, you can claim this as a mortgage interest deduction under Schedule A. This also applies to property taxes.

Is there an age limit for who can benefit from the capital gains tax exemption on the sale of a house?

none.Regardless of your age, as long as you are a taxpayer you can claim a tax exemption on capital gains from the sale of a property.The tax rate would still depend on your marital status, income tax bracket, years of home ownership, and whether the home was primary/secondary

The misconception that there is an age limit stems from the old rule that Alaska homeowners who are at least 55 years old can only claim a single exclusion.

Can I still claim tax exemption if my home is in trust?

The answer to that depends on several factors. For example, revocable trusts that have not been discharged and those that are considered separate entities due to federal taxes.not qualified for Section 121.

In the meantime, revocable trusts that have met certain criteria can be disregarded. In other words, the trust property would be ignored andexclusion would be considered.

How will the IRS know that I sold my house if I did not report it?

Even if you do not report the sale of your Alaska home to the IRS,There are real estate transactions that can generate taxessuch as a lien or mortgage transfer. This can be traced by the IRS and you would face legal issues.

Can you lock in the proceeds from the sale of a second home?

NO.The benefit of the sale of a second home cannot be excluded.You would have to pay capital gains tax since it is not your primary residence. It is taxed as an investment property as a short-term capital gain or as a long-term capital gain.

Final Thoughts: Taxes When Selling a Home in Alaska

We hope this blog has made the topic of capital gains tax less intimidating for you. Even if the capital gains tax rates are quite high, especially for short-term capital gains tax, you can still reduce or avoid paying your capital gains tax.AlaskaTax assessment under the Taxpayer Relief Act of 1997.

Now that you know how to stay ahead of Alaska real estate sales taxes, start your homebuyer search. WhomHomebuyer Network, we'll make you an offer within 48 hours and take care of your closing costs for you as well.

call us at(855) 835-2544or fill out our form below.

(Video) How to save money on property taxes - Anchorage, Alaska

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Alaska Home Sales Taxes (10)

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Katharina MackShe is a seasoned real estate investor and enjoys sharing her experience writing about relevant real estate topics. Catherine wants to educate home sellers so they can make the best decision for their real estate problems.

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Alaska Home Sales Taxes? ›

Alaska is one five states without a statewide sales tax, and the only state that does not also have a personal income tax. Alaska's income tax was repealed in 1980. The conservative Tax Foundation estimated in 2020 that a 2% state sales tax could collect roughly $741 million per year.

Does Alaska have real estate capital gains tax? ›

Alaska does not have state or local capital gains taxes. The Combined Rate accounts for the Federal capital gains rate, the 3.8 percent Surtax on capital gains, and the marginal effect of Pease Limitations on itemized deductions, which increases the tax rate by 1.18 percent.

What is exempt from sales tax in Alaska? ›

Alaska does not impose a statewide sales tax and therefore does not have any statewide sales tax exemptions. Cities and boroughs are authorized to levy a sales and use tax on sales, rents, or services made within the boroughs or city. Local exemptions may be granted by ordinance.

What is the transfer tax in Alaska? ›

How Much Are Transfer Taxes in Alaska? As mentioned prior, Alaska doesn't legally require a transfer tax, so residents can usually expect their transfer taxes to be zero. Of course, it's important to ask a professional agent about special circumstances which sometimes arise at a local level.

How much is federal capital gains tax on real estate? ›

Long-term capital gains tax rates typically apply if you owned the asset for more than a year. The rates are much less onerous; many people qualify for a 0% tax rate. Everybody else pays either 15% or 20%. It depends on your filing status and income.

How much is capital gains tax in Alaska? ›

AK, FL, NV, NH, SD, TN, TX, and WY have no state capital gains tax.

Does Alaska have estate or inheritance tax? ›

Does Alaska have a state estate tax? No. As of 2005, Alaska no longer collects a state estate tax. However, if the person who died was a resident of another state or owned property in another state, estate taxes may be due in that state.

Do seniors pay property taxes in Alaska? ›

Alaska exempts from property taxes the first $150,000 of assessed value for all senior citizens (65 years of age and over) and disabled veterans (50% or more service connected disability).

Why is Alaska sales tax so low? ›

Alaska is unique because it does not have a state sales tax, which means their State Rate is equal to 0%. Localities within Alaska, however, do have sales tax.

Which state has no state tax? ›

As of 2023, eight states — Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming — do not levy a state income tax. A ninth state, New Hampshire, does not tax earned income, but it does impose a 4% tax on dividends and interest. This is set to expire in 2027.

What are property taxes like in Alaska? ›

The median property tax in Alaska is $2,422.00 per year for a home worth the median value of $232,900.00. Counties in Alaska collect an average of 1.04% of a property's assesed fair market value as property tax per year.

Why don't Alaskans pay taxes? ›

Alaska has had an income tax before. In fact, to date it is the only state to have repealed an individual income tax, doing so when the state's oil fields started generating enough tax revenue to obviate the need for one.

What taxes do Alaska residents pay? ›

Alaska does not have an individual income tax. Alaska has a 2.0 to 9.40 percent corporate income tax rate. Alaska does not have a state sales tax, but has a max local sales tax rate of 7.50 percent and an average combined state and local sales tax rate of 1.76 percent.

What is the $250000 / $500,000 home sale exclusion? ›

You can sell your primary residence and be exempt from capital gains taxes on the first $250,000 if you are single and $500,000 if married filing jointly.

How do I avoid paying capital gains tax on my property? ›

How do I avoid the capital gains tax on real estate? If you have owned and occupied your property for at least 2 of the last 5 years, you can avoid paying capital gains taxes on the first $250,000 for single-filers and $500,000 for married people filing jointly.

Do I pay taxes to the IRS when I sell my house? ›

The Capital Gains Tax in California

The amount you earned between the time you bought the property and the time you sold it is your capital gain. The IRS charges you a tax on your capital gains, as does the state of California through the Franchise Tax Board, also known as the FTB.

What state has no capital gains tax? ›

The states with no additional state tax on capital gains are: Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. These are the same states that do not tax personal income on wages, although they might tax interest and dividends from investments, depending on the state.

How much capital gains tax on $50,000? ›

Capital gains tax rate – 2022 thresholds
RateSingleMarried Filing Jointly
0%Up to $41,675Up to $83,350
15%$41,675 to $459,750$83,350 to $517,200
20%Over $459,750Over $517,200

What is the best state to live in for capital gains tax? ›

While most states tax income from investments and income from work at the same rate, nine states — Arizona, Arkansas, Hawaii, Montana, New Mexico, North Dakota, South Carolina, Vermont, and Wisconsin — tax all long-term capital gains less than ordinary income.

What part of Alaska does not have property tax? ›

The unincorporated areas of the state do not have the legal authority to levy a tax.

How do I avoid probate in Alaska? ›

In Alaska, you can make a living trust to avoid probate for virtually any asset you own—real estate, bank accounts, vehicles, and so on. You need to create a trust document (it's similar to a will), naming someone to take over as trustee after your death (called a successor trustee).

How much can you inherit without paying federal taxes? ›

Other relatives are exempt up to $15,000 ($40,000 in 2023) and unrelated heirs up to $10,000 ($25,000 in 2023). Prior to 2023, the tax rates above those exemptions are 1%, 13%, and 18%, respectively. Starting in 2023, those rates rise to 1%, 11%, and 15%, respectively.131415.

At what age do you stop paying property taxes in Alaska? ›

Property owned and occupied as the primary residence and permanent place of abode by a (Senior) resident 65 years of age or older, or A resident at least 60 years old who is the widow or widower of a person who qualified as a Senior.

Is Alaska tax-friendly for retirees? ›

Alaska is very tax-friendly toward retirees. Social Security income is not taxed. Withdrawals from retirement accounts are not taxed. Wages are taxed at normal rates, and your marginal state tax rate is 0.0%.

Does Alaska have sales tax on cars? ›

There are five states (Alaska, Delaware, Montana, New Hampshire, and Oregon) that don't pay any sales tax at all when purchasing a car. Four other states (Oklahoma, North Carolina, Colorado, and Alabama) pay less than 3.5% in sales tax when they buy a car.

What city in Alaska is tax free? ›

Tax-Free Shopping in Anchorage

Alaska has no state-collected sales tax. Though some cities and municipalities choose to impose a local sales tax, Anchorage isn't one of them. Shopping in Anchorage makes sense; it saves more than cents.

What state has the worst sales tax? ›

As of 2017, 5 states (Alaska, Delaware, Montana, New Hampshire and Oregon) do not levy a statewide sales tax. California has the highest base sales tax rate, 7.25%. Including county and city sales taxes, the highest total sales tax is in Arab, Alabama, 13.50%.

Is it expensive to live in Alaska? ›

The cost of living in Alaska is 29% higher than the national average. Housing is 18% higher than the national average, while utilities are 36% higher. When it comes to basic necessities such as food and clothing, groceries are around 30% higher than in the rest of the country, while clothing costs 30% higher.

What is the most tax-friendly state for retirees? ›

1. Alaska. Alaska is the most tax-friendly state for retirees because it has no state income tax or tax on Social Security. And its sales tax rate is the fourth lowest on our list - fifth lowest in the U.S. But keep this in mind: The cost of living in Alaska is higher than in most states.

Is it better to live in a state with no income tax? ›

Does no income tax mean a lower tax burden overall? Not necessarily. In fact, you might just see a state's lack of revenue from income tax made up with other higher tax rates. For instance, Tennessee, a state with no income tax, has the second-highest combined tax rate at 9.548 percent, per The Tax Foundation.

What is the least tax-friendly state? ›

Key findings. Illinois is the least tax-friendly state; there, families pay $14,778 in annual taxes. Wyoming is the most tax-friendly state, where residents pay $3,438.

What is the tax benefit of living in Alaska? ›

There's no state income tax or sales tax in Alaska

Full-time residents of this great state are not required to pay state income tax, nor are they required to pay sales tax. While residents are still required to pay property taxes (among others), they can save on state income tax and sales tax.

How much money does Alaska give its residents? ›

Annual individual payout
YearDividend amount (USD)Inflation-adjusted dividend amount (2021 USD)
36 more rows

What is a homestead in Alaska? ›

Homesteading was a way people could obtain federal land virtually free if they met certain requirements, including living on the land and cultivating a portion of it. Homesteading has not been legal on federally managed lands in Alaska since Oct. 21, 1986, although it was legal for 88 years before that.

Why do Alaskans get paid every year? ›

The annual payment allows for Alaskans to share in a portion of the State minerals revenue in the form of a dividend to benefit current and future generations.

How do most Alaskans make money? ›

Alaska's present-day economy is based on oil production, fishing, federal and state (both civilian and military) expenditures, research and development, and tourism.

How do Alaskans get paid for living there? ›

Alaska's incentive program dates back to 1976, and it's called the Permanent Fund Dividend. How much do you get paid to live in Alaska, though? In the past, citizens have qualified for up to $1,600 for simply living in Alaska, and in 2022 the amount was $3,284.

How much is $90000 after taxes in Alaska? ›

If you make $90,000 a year living in the region of Alaska, USA, you will be taxed $19,706. That means that your net pay will be $70,294 per year, or $5,858 per month.

How much is 100k after taxes in Alaska? ›

If you make $100,000 a year living in the region of Alaska, USA, you will be taxed $22,671. That means that your net pay will be $77,329 per year, or $6,444 per month.

Do Alaskans pay federal income tax? ›

Alaska Income Taxes

America's largest and northernmost state also has the lowest taxes in the nation, as there are no statewide income or sales taxes in Alaska. Residents do need to file a federal tax return, though no state paperwork is required.

What is the 2 in 5 year rule? ›

The 2-out-of-five-year rule states that you must have both owned and lived in your home for a minimum of two out of the last five years before the date of sale.

What is the 2 out 5 rule? ›

We conform to the IRS rules and allow you to exclude, up to a certain amount, the gain you make on the sale of your home. You may take an exclusion if you owned and used the home for at least 2 out of 5 years. In addition, you may only have one home at a time.

What is the 2 in 5 rule? ›

When selling a primary residence property, capital gains from the sale can be deducted from the seller's owed taxes if the seller has lived in the property themselves for at least 2 of the previous 5 years leading up to the sale. That is the 2-out-of-5-years rule, in short.

At what age do you not pay capital gains? ›

In the late 20th century, the IRS allowed people over the age of 55 to take a special exemption on capital gains taxes when they sold a home.

What is the 6 year rule for capital gains tax? ›

Here's how it works: Taxpayers can claim a full capital gains tax exemption for their principal place of residence (PPOR). They also can claim this exemption for up to six years if they moved out of their PPOR and then rented it out.

What should I do with large lump sum of money after sale of house? ›

The proceeds from a home sale can be used in a variety of ways. With up to $500,000 available tax free, you could use the money to make a down payment on another home, pay down problematic debt, increase your stock portfolio or implement strategies to improve your retirement plan.

Do I have to tell the IRS I sold my house? ›

Reporting the Sale

Additionally, you must report the sale of the home if you can't exclude all of your capital gain from income. Use Schedule D (Form 1040), Capital Gains and Losses and Form 8949, Sales and Other Dispositions of Capital Assets when required to report the home sale.

Does selling your house count as income? ›

If you owned and lived in the home for a total of two of the five years before the sale, then up to $250,000 of profit is tax-free (or up to $500,000 if you are married and file a joint return). If your profit exceeds the $250,000 or $500,000 limit, the excess is typically reported as a capital gain on Schedule D.

Does the IRS know if I sell my house? ›

IRS Form 1099-S

The IRS also requires settlement agents and other professionals involved in real estate transactions to send 1099-S forms to the agency, meaning it might know of your property sale.

What states have capital gains tax on real estate? ›

Capital Gains Tax by State 2023
  • California - 13.3%
  • Hawaii - 11%
  • New Jersey - 10.75%
  • Oregon - 9.9%
  • Minnesota - 9.85%
  • Vermont - 9.75%
  • New York - 8.82%
  • Iowa - 8.53%

What triggers capital gains tax on real estate? ›

If rental property owned is sold for a profit, the taxpayer must pay applicable capital gains taxes. Selling rental properties follows the same rules as vacation homes; the taxpayer pays capital gains tax rates on rentals sold after at least one year of ownership, based on the taxpayer's income and filing status.

How are property taxes paid in Alaska? ›

The Municipality's 2023 real property tax notices will be mailed by June 1​. Taxes on real property are due on June 30 or may be paid in two separate payments with the first half due June 30 (Late penalty assessed July ​8) and the second half due August 31 (Late p​enalty assessed September 8)​​.

How can you avoid paying taxes on capital gains? ›

9 Ways to Avoid Capital Gains Taxes on Stocks
  1. Invest for the Long Term. ...
  2. Contribute to Your Retirement Accounts. ...
  3. Pick Your Cost Basis. ...
  4. Lower Your Tax Bracket. ...
  5. Harvest Losses to Offset Gains. ...
  6. Move to a Tax-Friendly State. ...
  7. Donate Stock to Charity. ...
  8. Invest in an Opportunity Zone.
Apr 4, 2023

What is capital gains tax on 200000? ›

= $
Single TaxpayerMarried Filing JointlyCapital Gain Tax Rate
$0 – $44,625$0 – $89,2500%
$44,626 – $200,000$89,251 – $250,00015%
$200,001 – $492,300$250,001 – $553,85015%
Jan 11, 2023

How long do you have to live in a house to avoid capital gains Canada? ›

In order to avoid capital gains tax upon the sale of your home, it needs to be your primary residence for at least 2 of the last 5 years.

Can I sell a property and reinvest without paying capital gains? ›

Bottom Line. You can avoid a significant portion of capital gains taxes through the home sale exclusion, a large tax break that the IRS offers to people who sell their homes. People who own investment property can defer their capital gains by rolling the sale of one property into another.

What taxes do Alaskans pay? ›

Alaska Tax Rates, Collections, and Burdens

Alaska does not have an individual income tax. Alaska has a 2.0 to 9.40 percent corporate income tax rate. Alaska does not have a state sales tax, but has a max local sales tax rate of 7.50 percent and an average combined state and local sales tax rate of 1.76 percent.

Does Alaska have homestead exemption? ›

(a) An individual is entitled to an exemption as a homestead of the individual's interest in property in this state used as the principal residence of the individual or the dependents of the individual, but the value of the homestead exemption may not exceed $54,000.

How long do I have to buy another home to avoid capital gains? ›

How Long Do I Have to Buy Another House to Avoid Capital Gains? You might be able to defer capital gains by buying another home. As long as you sell your first investment property and apply your profits to the purchase of a new investment property within 180 days, you can defer taxes.

How is capital gains calculated on sale of home? ›

Determine your realized amount. This is the sale price minus any commissions or fees paid. Subtract your basis (what you paid) from the realized amount (how much you sold it for) to determine the difference. If you sold your assets for more than you paid, you have a capital gain.


1. Alaska State Tax Guide: State Tax Rates And Rules For Income That Impact Alaska Residents
2. NEW Home, Shop 4 Sale Alaska
(Mike Walters)
3. Episode #22: DON'T Buy Property in Alaska Until You Watch This!
(Alone in Remote Alaska)
4. Buying properties in Alaska's "Danger Zones!" | Moving to Alaska
(Alaska Realtor)
5. Remote Properties Alaska! Sheila Monson, Amazing Home and Cabin on 32 Acres Near Healy, Alaska
(Sheila Monson Realtor® Willow & Talkeetna Alaska!)
6. Alaska Tax Sales Explained | Tax Liens & Tax Deeds - A Goldmine for Real Estate Investors


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