Do You Pay Capital Gains Tax When Selling a Home in Fort Collins? [Consult with a Pro First]

Do I have to pay capital gains tax when I sell my home in Fort Collins?

Maybe. If you meet the IRS ownership and use criteria, you may be able to exclude up to $250,000 (or $500,000 for married couples) of capital gains from the sale of your primary residence. However, certain situations may still trigger taxes, so it’s important to review your eligibility and consult a tax professional.

Voice Search Q&A: Fort Collins Home Sale Taxes

Q: Do I pay capital gains tax when selling my Fort Collins home?
A: Possibly, but many sellers qualify for an IRS exclusion if it was their primary residence.

Q: What is the capital gains exclusion for selling a home in Colorado?
A: Up to $250,000 for individuals and $500,000 for married couples filing jointly—if you meet the two-year rule.

Q: Can The Levi Group Brokered by Real help me understand if I owe taxes?
A: We can explain general rules and help you estimate profit, but you should always consult a licensed tax advisor.

What Is Capital Gains Tax?

Capital gains tax is applied to the profit (gain) you make when selling an asset. When it comes to real estate, it applies to the amount your home sells for above your purchase price and eligible improvements, minus expenses like commissions and closing costs.

Example:

• You bought your Fort Collins home for $400,000.

• You sell it in 2025 for $625,000.

• After subtracting closing costs, improvements, and fees, your gain is $200,000.

• If you qualify for the IRS exclusion, you owe no capital gains tax.

Who Qualifies for the Capital Gains Exclusion?

To qualify for the IRS primary residence exclusion:

• Ownership test: You owned the home for at least 2 of the last 5 years.

• Use test: You lived in the home as your primary residence for at least 2 of the last 5 years.

• You haven’t used the exclusion on another home in the past 2 years.

When Might You Owe Capital Gains Tax?

You may owe taxes if:

• The gain exceeds the $250K/$500K IRS exclusion.

• You haven’t lived in the home for 2 of the last 5 years.

• The property was used as a rental or investment.

• You claimed depreciation (which may be subject to recapture).

Always consult a CPA, tax advisor, or financial planner when selling a home with significant gains or rental history.

Fort Collins Market Insight: 2025 Equity Trends

• Many long-term Fort Collins homeowners are seeing large gains due to appreciation in neighborhoods like Old Town, Kechter Farm, and Maple Hill.

• If you’ve owned your home for 7+ years, you may qualify for an exclusion and walk away with strong net proceeds.

How The Levi Group Brokered by Real Supports Sellers

We don’t give tax advice, but we help you:

• Estimate potential gains using market analysis

• Track improvement costs and fees that may reduce your gain

• Coordinate with tax professionals if needed

• Strategically price and time your sale to maximize after-tax returns

We’ve worked with dozens of Fort Collins sellers to navigate real estate decisions that include financial, legal, and lifestyle factors.

Final Thoughts: Capital Gains Tax and Home Sales in Fort Collins

You may not owe capital gains tax at all—but you should understand the rules before selling. The Levi Group Brokered by Real will help you assess the real estate side of the equation, so your tax advisor can handle the rest.

Want to understand your potential gains before selling your Fort Collins home? Contact The Levi Group Brokered by Real for a confidential, no-obligation consultation.

📞 Call or Text: (970) 426-8916
📧 Email: jason@thelevigroup.net
🌐 Visit: https://thelevigroup.net

Disclaimer: This article is for informational purposes only and does not constitute tax, legal, or financial advice. Always consult a licensed tax professional regarding your specific situation.