Home Sale Net Proceeds Calculator

Roughly sale price minus 6-12% in selling costs minus mortgage payoff. On a $500K sale with $250K mortgage and 8% selling costs: ~$210K net to seller. The 8% breaks down to: 5% commission, 1% transfer tax, 0.5% title/attorney, 1.5% miscellaneous. Use our calculator with your specific numbers for precision.

Usually no for primary residences. Section 121 excludes $250K (single) or $500K (married) of capital gain from federal income tax if you owned and lived there 2+ years. Most homeowners avoid capital gains tax entirely. Investment properties don't qualify — taxed at 0/15/20% LTCG rates plus state.

Sale price minus cost basis minus selling expenses. Cost basis = purchase price + capital improvements (renovations, additions, NOT routine maintenance). Selling expenses = commission, transfer tax, attorney fees. Document all improvements and selling costs to maximize basis and minimize taxable gain.

Things that add value or extend useful life: kitchen remodel, bathroom remodel, room addition, new roof, new HVAC system, finished basement, deck, pool, fence, driveway. Not deductible: painting, repairs, cleaning, maintenance. Keep receipts and photos for at least 7 years after sale to support tax claim if audited.

Once every 2 years. So if you used it on a sale in 2024, you can't use it again until 2026. Special rules apply for: military deployment (extended use period), surviving spouse (can claim joint $500K for 2 years), divorce (relinquishing spouse credited), and forced sale due to job change/health/unforeseen circumstance (partial exclusion).

Title company orders official payoff statement from your lender about 7-14 days before closing. Includes principal, accrued interest through closing date, prepayment penalty (rare on consumer mortgages), and recording fees. The closing agent wires the exact amount to your lender; you receive any remaining proceeds.

No — Section 1031 only applies to investment/business real estate. Primary residences use Section 121 exclusion instead. If you owned a property as both rental and primary residence over the years, complex rules govern; the IRS has specific guidance on partial exclusions for converted properties (rental to primary or vice versa).

If gain is fully excluded under Section 121 and you didn't receive a Form 1099-S, no reporting required. If you received Form 1099-S (most title companies issue these), report the sale on Form 8949/Schedule D even if fully excluded. If gain exceeds the exclusion amount or property doesn't qualify, the excess is taxable.