By: Duane Duggan | At Home Colorado
If you own your personal residence in Colorado, you have probably noticed that your recent tax assessment increased by a large percentage. If you are planning to sell your home in the near future, the increased appreciation will result in the likelihood that you have a large capital gain tax bill to pay.
The Taxpayer Relief Act enacted in 1997 allowed for $250,000 exclusion of gain for a single person and $500,000 for a married couple when a personal residence was sold. The caveat was that the homeowner needed to live in the home for the previous two out of five years in order for the exclusion to apply. In 1997, that seemed like a lot of money! Back then, the average price for a home in Boulder County was about $200,000.