As Profits Rise, Capital Gains Tax Hits More DC Home Sellers
✉️ Want to forward this article? Click here.
For years, UrbanTurf has reported on the hefty profits that DC-area home sellers have reaped. Now, the tax implications of those profits are coming into focus.
A recent article in The Wall Street Journal noted that 8% of U.S. home purchases in 2023 brought profits over the $500,000 limit for couples to be exempt from capital-gains taxes, double the total from 2019.
story continues below
story continues above
In DC, the percentage was significantly higher. Twenty-two percent of home sellers in the city saw windfalls in excess of $500,000 at the end of 2023. That percentage is not too surprising given the our recent coverage that found home sellers reaping six-figure profits in most city zip codes.
For many, capital gains from selling a home aren’t taxed. The exception is one of the biggest in the tax code — for a single person, up to $250,000 in profit is exempt from obligations to Uncle Sam. If married and filing jointly, that threshold goes up to a comfortable $500,000 exempt from taxation. But as profits get bigger, that $500,000 threshold is regularly being exceeded.
For UrbanTurf's primer on the taxes and profits of selling a home, click here.
See other articles related to: capital gains tax, dc home seller profits
This article originally published at https://dc.urbanturf.com/articles/blog/as_profits_rise_capital_gains_tax_hits_more_dc_home_sellers/22273.
Most Popular... This Week • Last 30 Days • Ever

The Hoffman & Associates project is having difficultly securing financing.... read »

Cash-out refinancing is a popular financial strategy that allows homeowners to conver... read »

Plans to redevelop a strip mall along the thoroughfare are back in the works after a ... read »

A new report continues to find that there is an uptick in new listings coming online ... read »

The new 230-room citizenM hotel is expected to open at the beginning of 2026.... read »
- 445-Unit Mixed-Use Development Adjacent to Audi Field Will Be Delayed
- How Does Cash-Out Refinancing Work?
- 262-Unit Development With 'Main Street' Retail Pitched For Columbia Pike
- Three Months In, How Is DOGE Affecting The DC-Area Housing Market?
- Georgetown Hotel Along Water Street Set To Deliver Next Year
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro