Hey everyone, I’m Jodi Bakst with Real Estate Experts. I’ve been helping buyers and sellers in Chapel Hill and Durham for 28 years—which basically means I’ve seen every home sale plot twist out there, including the surprise capital gains tax drama!”

And if you’re selling your home in less than two years—yeah, we need to talk. Because Uncle Sam might want a cut.

First, if you haven’t seen my other video—‘3 Simple Criteria to Qualify for a Capital Gains Exemption’—pause this one, go watch that, then come back. The Link is below.

Now Let’s do some math

Example 1 – No Tax Owed:
You bought your home for $500K. You upgraded the kitchen, added a fancy deck—boom, $30K in upgrades. Your cost basis is now $530K.

You sell the home for $540K. Yay!
BUT—commission, revenue stamps, repairs, legal docs? That adds up to $29,300.

So you net $510,670. Subtract your cost basis ($530,000), and guess what? You’re actually at a loss of $19,330. Which means your tax bill? Zero. Zilch. Nada.”

Example 2 – You Owe (But Not a Ton):

Same $500K purchase, but no upgrades this time.
Sell for $540K → subtract $29,300 in selling costs → net = $510,670.
Subtract your cost basis = $510,670 - $500,000 = $10,670 gain.

You don’t pay tax $10,670 in tax— you pay a percentage of it.

North Carolina: 5%
Federal: 15%
So total: 20% of $10,670 = $2,134 in taxes.

That’s basically like... 500 fancy coffees. Or one really big trip to Costco.

So here’s the deal: If you’re thinking about selling, and it’s been less than 2 years, don’t panic. Run the numbers. Call your tax pro. And hey—call me too. I’m here to make this way less confusing.

If this video was helpful

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I’m Jodi Bakst with Real Estate Experts. Until next time, stay smart—and sell smart

📺 Watch this first: 3 Simple Criterial to Qualify for a Capital Gains Tax Exemption https://youtu.be/UVivX64j_kA 

 💬 Got questions? Drop them in the comments—I'm happy to help.

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