Short answerOften not, on your main home. Federal law lets you exclude up to $250,000 of gain, or $500,000 for most married couples filing jointly, if you owned and lived in the home at least two of the last five years. Rentals, second homes, and gains above the limit can be taxed. Ask a CPA about your numbers.
The basic rule
| Filing status | Gain you can generally exclude |
|---|---|
| Single | Up to $250,000 |
| Married filing jointly | Up to $500,000 |
To qualify, you generally must have owned and used the home as your main home for at least two of the five years before the sale, and not used the exclusion in the prior two years.
When tax can apply
- Rental property and second homes.
- Gain above the exclusion.
- Part of a home used for business or rented.
- Inherited homes, which follow different basis rules.
Indiana property taxes at closing
Separate from income tax, Indiana property taxes are prorated at closing; see property tax proration.
This is general information, not legal or tax advice. Ask a real estate attorney or CPA about your situation.
Frequently asked questions
Is there a transfer tax when I sell in Indiana?
No. Indiana does not have a deed transfer tax.
How do I figure my gain?
Generally sale price minus selling costs minus your basis: what you paid plus improvements. A CPA can confirm.
Keep reading
Want to know what a buyer's inspector may find before they do?
Book a free pre listing condition walk. I walk the house with you, point out what inspectors and FHA, VA, and USDA appraisers tend to flag, and give you planning ranges so you can decide what to fix, credit, price in, or disclose.
Book a condition walkOr call or text (812) 525-5489, or email [email protected].
The condition walk is a REALTOR® and contractor evaluation, not a home inspection, and it does not replace one. If you have already signed a listing agreement with another agent, please take these questions to your agent.
Sources
Written by John Long, REALTOR®, 1 Percent Lists Indiana Real Estate. Working contractor who has priced hundreds of home inspection repair requests. Former labor relations negotiator for a major manufacturer and U.S. Coast Guard veteran.
John Long, REALTOR® · 1 Percent Lists Indiana Real Estate · (812) 525-5489 · yourpropertynegotiator.com
This page is general information, not a substitute for a professional home inspection, and not legal, tax, insurance, or lending advice. Ask a real estate attorney about contracts and disclosure, a CPA about taxes, your lender about loan rules, and a licensed inspector or tradesperson about your house. Nothing here guarantees a sale price, net proceeds, repair cost, payment, timeline, appraisal, inspection result, or loan approval. Cost figures are planning estimates, not bids. I own Wardmark Property Operations LLC, a contracting company. You are always free to use any contractor you choose.