What to Know About Capital Gains When Selling Your Home in Douglas County

What are capital gains, and how do they affect home sellers in Douglas County?

Capital gains are the profits you make from selling your home. If your home sells for more than you originally paid, you may owe capital gains tax—though many homeowners qualify for exemptions.

What Are Capital Gains?

Capital gains are calculated as: Sale Price – Purchase Price – Eligible Expenses = Capital Gain

Eligible expenses may include:

• Home improvements (not repairs)

• Closing costs

• Real estate commissions

If your gain is large enough, it could be subject to federal—and sometimes state—capital gains tax.

The Primary Residence Exclusion

Many Lone Tree and Douglas County homeowners qualify for the IRS Primary Residence Exclusion:

• Excludes up to $250,000 of profit (single filers)

• Or $500,000 (married couples filing jointly)

To qualify:

• You must have owned the home for at least 2 of the last 5 years

• You must have lived in it as your primary residence for 2 of the last 5 years

• You haven’t used the exclusion in the past 2 years

When You Might Owe Capital Gains Tax

You may owe capital gains tax if:

• Your gain exceeds the exemption limits

• The property was not your primary residence (e.g., rental or second home)

• You haven’t met the ownership and use requirements

Example:

You bought your Lone Tree home in 2015 for $600,000. You sell in 2025 for $1.2M. After closing costs and improvements, your gain is $540,000. If you’re married, $500,000 is excluded—you may owe tax on the remaining $40,000.

State Tax Considerations

Colorado does tax capital gains, although rates are lower than federal. A tax professional can help calculate exact amounts and identify deductions.

How Debi Haning Supports Sellers

Debi can’t provide tax advice—but she does help sellers:

• Understand timing and potential tax implications

• Recommend experienced CPAs and tax advisors

• Coordinate with professionals to plan your sale wisely

Debi works with downsizers, luxury sellers, and estate transitions throughout Douglas County, including Lone Tree, Castle Pines, and Highlands Ranch.

Final Thoughts

Capital gains don’t need to be scary. With smart planning, most sellers avoid or minimize them entirely.

Selling in 2025? Plan Ahead Now

Before listing, talk to your financial advisor and a local expert like Debi Haning.

Debi helps you prepare, price, and sell your home with clarity and confidence.