SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Suppose you sell your primary home and make a $750,000 profit. Will you owe capital gains tax on that profit? The short answer is yes. Depending on a handful of factors, you may owe tens of thousands of dollars to over a hundred thousand dollars. Your exact tax liability could vary drastically, so knowing what goes into this calculation and how to do it yourself is important. If you need additional help ma ...

SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. When you sell your primary home, the IRS allows you to exclude a significant portion of the profit from your taxes. This exclusion – $250,000 for single filers and $500,000 for married, joint filers – is large enough that many sellers don’t end up paying federal taxes on the capital gains from a home sale. But if you’re netting $620,000 from the sale of your house as you downsize for retirement, you will p ...