How Can We Reduce or Avoid Capital Gains on $550k From Downsizing?

SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Selling your home to downsize can make your retirement more financially stable, but if you have a profit on the sale you might owe capital gains taxes. Fortunately, in many cases those selling their primary residence who are single can exclude $250,000 from capital gains taxes, while married couples filing jointly can exclude $500,000. Employing this exclusion can reduce or eliminate capital gains taxes si ...