Taxes on Selling a House Georgia
If you are researching taxes on selling a house Georgia, it is important to understand how state and federal rules may affect your final profit. At Trusty House Buyers, we specialize in buying homes in as-is condition, including properties damaged by fire, flood, storms, or neglect. That means:
No repairs
No cleaning
No inspections
No waiting
Many homeowners do not think about taxes until they are about to sell, but knowing the potential tax obligations can help you make smarter financial decisions. Whether you are selling your primary residence, a second home, or an investment property, understanding taxes on selling a house Georgia will help you avoid surprises and keep more money in your pocket.
Why Some Sellers Choose a Cash Buyer
Many homeowners facing high repair costs, tight timelines, or financial distress prefer to sell directly to a cash buyer. At Trusty House Buyers, we purchase homes quickly, without repairs or cleaning, and often close in as little as 7 days. While this may not eliminate taxes, it can help you avoid ongoing expenses such as mortgage payments, property taxes, and maintenance costs while you wait for a traditional sale.
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Understanding Taxes When Selling a Home in Georgia
When you sell a house in Georgia, there are generally two main types of taxes to be aware of:
Capital Gains Tax – This is the tax on the profit you make from selling your home.
State and Local Taxes – Georgia follows federal capital gains rules but may also have state tax implications.
If your home has increased in value since you bought it, you may owe capital gains tax on the profit. However, there are exemptions and deductions that can reduce or even eliminate this tax for many homeowners.
The Capital Gains Exemption
One of the most important aspects of taxes on selling a house Georgia is the IRS Section 121 exclusion. If you have lived in your home as your primary residence for at least two of the last five years before selling, you may be able to exclude:
Up to $250,000 of profit if you are single
Up to $500,000 of profit if you are married and filing jointly
This means that if your gain is below these amounts, you may not owe any federal capital gains tax at all.
How Georgia State Taxes Apply
Georgia does not have a separate state capital gains tax rate. Instead, any taxable gain is included in your Georgia taxable income and taxed at the state’s regular income tax rates. That means your total tax obligation will depend on both your federal and Georgia state tax brackets.
Selling an Investment or Rental Property
If you are selling an investment property, the rules are different. The capital gains exemption does not apply, and you may also owe depreciation recapture tax. Many landlords looking up taxes on selling a house Georgia are surprised by this extra cost, which is applied when you have claimed depreciation deductions while owning the property.
To reduce taxes, some investors use a 1031 exchange, which allows you to defer paying capital gains taxes by reinvesting the proceeds into another investment property.
Hear From Other Homeowners
Shan K.
"Awesome experience!"
"Awesome experience! First time selling a property and the home selling process was quick and smooth. The team is very caring and accommodating. I would definitely recommend them to anyone!"
Billy Becker
"Would recommend to all!"
"I had a great experience working with this group. They answered every question and left me feeling totally satisfied with the transaction. Would recommend to all!"
Brandon Doctor
"Paid more than other cash buyers"
"I have done several deals with this company and they have always treated people fairly and paid more than other cash buyers I’ve talked to."
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Other Costs Related to Selling
When calculating taxes on selling a house Georgia, remember that certain selling costs can reduce your taxable gain. These may include:
Real estate agent commissions
Closing costs paid by the seller
Certain repairs or improvements made before the sale
Legal and escrow fees
Keeping accurate records of these expenses can help you lower your tax bill.
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Common Questions About Taxes on Selling a House in Georgia
Do I have to pay taxes if I sell my home at a loss?
No. If you sell for less than you paid, you generally will not owe capital gains tax, but you also cannot claim a loss on a personal residence.
How does the IRS know if I sold my home?
Your closing agent or attorney will usually file IRS Form 1099-S, reporting the sale.
If I inherit a house and sell it, do I owe taxes?
Inherited property gets a "stepped-up" basis to the current market value, which can reduce or eliminate capital gains tax if you sell shortly after inheriting.
What if I own the property with someone else?
Taxes are split according to ownership percentage, and each owner may be eligible for their own capital gains exclusion.