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You need to know what kind of capital gains tax you’re going to be paying, and this guide can help.

You know what’s exciting? Making a lot of money when you sell your home! You know what’s not as exciting? Giving a sizable portion of that to the government.

Good news: you may not have to give as much as you think! In 1997, a Taxpayer Relief Act made it possible for you to hold on to more of the money you make when you sell your house (also known as your capital gains). Here are two things you need to know about your capital gains tax.

Your marital status will matter.

Thanks to 1997’s Act, you can pocket a good chunk of your home sale profit tax-free. How much you get to keep without the IRS involved depends on your marital status, though. Single people get a tax-free profit of $250,000, while married people can keep $500,000 tax-free. The trick is that to claim the married exemption, both peoples’ names need to be on the title and both people must have lived there for at least two years.

If you actually lived in your home, you’re in good shape.

The people who pay the least in capital gains are the people who actually used their homes as, well, homes. If you’ve been using the house you plan to sell as your primary residence for two years, you’ll likely pay less in taxes than, say, someone who bought and flipped the house or someone who’s been using it as a rental property.

Would you like more information about how much money you’ll be able to pocket from your home sale, or help selling in the first place? Contact Jenn Blake Real Estate Group at Pacific Sotheby’s International Realty in San Diego, California at 858-663-6788 for all of your home selling needs.