Published March 19, 2025
Ohio Real Estate Capital Gains
Understanding capital gains in Ohio is essential for anyone involved in real estate transactions, whether buying or selling. Capital gains are the profits realized from selling a property for more than its purchase price. In Ohio, these gains are subject to federal capital gains tax, and potentially state taxes, depending on your circumstances.
For homeowners, if you've used your home as your primary residence for at least two of the last five years, you may qualify for a significant tax exclusion. This exclusion allows you to exclude up to $250,000 of the gain from your taxable income if you're single, or up to $500,000 if you're married and filing jointly. This can greatly reduce your taxable amount, making it a crucial consideration when selling your home.
However, if the property is an investment or rental, different rules apply. In these cases, the exclusion for primary residences does not apply, and you may face higher taxes. Additionally, Ohio does not have a separate state capital gains tax, but capital gains are considered part of your income and are taxed at the state income tax rate, which ranges from 0% to 3.99% depending on your total income.
When filing taxes, it's important to report these gains accurately. Keep detailed records of your purchase price, improvements, and selling costs to calculate your gain correctly. This will help ensure compliance with tax regulations and potentially minimize your tax liability.
Please note, this information is not intended as legal or financial advice. The rules surrounding capital gains can be complex, and individual circumstances can vary widely. Therefore, it is always advisable to consult with your attorney and CPA to gain a comprehensive understanding of how capital gains apply to your specific situation. They can provide personalized advice and guidance tailored to your needs.
For more insights or assistance, feel free to reach out to me, Carly, at Milestone Property Group. I am here to help you navigate the complexities of real estate transactions and ensure you are well-informed about your options.
For homeowners, if you've used your home as your primary residence for at least two of the last five years, you may qualify for a significant tax exclusion. This exclusion allows you to exclude up to $250,000 of the gain from your taxable income if you're single, or up to $500,000 if you're married and filing jointly. This can greatly reduce your taxable amount, making it a crucial consideration when selling your home.
However, if the property is an investment or rental, different rules apply. In these cases, the exclusion for primary residences does not apply, and you may face higher taxes. Additionally, Ohio does not have a separate state capital gains tax, but capital gains are considered part of your income and are taxed at the state income tax rate, which ranges from 0% to 3.99% depending on your total income.
When filing taxes, it's important to report these gains accurately. Keep detailed records of your purchase price, improvements, and selling costs to calculate your gain correctly. This will help ensure compliance with tax regulations and potentially minimize your tax liability.
Please note, this information is not intended as legal or financial advice. The rules surrounding capital gains can be complex, and individual circumstances can vary widely. Therefore, it is always advisable to consult with your attorney and CPA to gain a comprehensive understanding of how capital gains apply to your specific situation. They can provide personalized advice and guidance tailored to your needs.
For more insights or assistance, feel free to reach out to me, Carly, at Milestone Property Group. I am here to help you navigate the complexities of real estate transactions and ensure you are well-informed about your options.
