Does selling with Beycome reduce my capital gains tax?

Selling costs (including agent commissions) reduce your capital gain, not increase your cost basis. By using Beycome flat fee listing instead of a traditional 6% commission, your selling costs are lower — but your taxable gain is higher. However, you keep significantly more net proceeds because the commission savings far exceed any additional tax.

Capital Gains Tax
Calculator.

Q: What is the Section 121 exclusion?

The Section 121 exclusion allows homeowners who have lived in their primary residence for at least 2 of the past 5 years to exclude up to $250,000 (single) or $500,000 (married filing jointly) of capital gains from federal income tax.

Q: What is the difference between short-term and long-term capital gains?

Short-term capital gains apply to assets held for one year or less and are taxed at your ordinary income tax rate (10-37%). Long-term capital gains apply to assets held for more than one year and are taxed at preferential rates of 0%, 15%, or 20% depending on your income and filing status.

Q: How do I calculate my cost basis?

Cost basis = original purchase price + capital improvements + buying closing costs. Capital improvements are renovations that add value to the home (kitchen remodel, new roof, additions), not routine repairs or maintenance.

Q: What are the 2026 long-term capital gains tax rates?

For 2026, long-term capital gains rates are 0% for taxable income up to $48,350 (single) or $96,700 (married joint), 15% for income up to $533,400 (single) or $600,050 (married joint), and 20% for income above those thresholds.

Quickly calculate your estimated capital gains tax
and see how the Section 121 exclusion may reduce it.

Your details

Filing status

Annual taxable income

Property details

Purchase price (cost basis)

Sale price

Home improvements ?Capital improvements that increase home value — kitchen remodel, new roof, additions. Not routine repairs or maintenance.

Years owned ?How long you've lived in the home as your primary residence. 2+ years qualifies for the Section 121 exclusion.

yrs

+ Show other costs.

Selling costs ?Agent commissions, closing fees, transfer taxes. Traditional: 8-10%. With Beycome: as low as 3-4%.

Buying closing costs ?Closing costs paid when you originally purchased the home. Adds to your cost basis.

Depreciation recapture ?If you claimed depreciation on a rental or investment property, that amount is "recaptured" and taxed at 25%. Leave at $0 for primary residences.

Estimated capital gains tax

Sale price	$450,000
Adjusted cost basis	$329,000
Selling costs	$27,000
Capital gain	$94,000
Section 121 exclusion	-$250,000
Taxable gain	$0
Tax rate	0%
Estimated tax	$0

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Sell with Beycome, keep more

Lower commissions = lower selling costs. Even if your taxable gain increases slightly, your net proceeds are thousands higher.

Traditional net proceeds —

Beycome net proceeds —

You save with Beycome —

Start selling with Beycome →

Understanding capital gains tax on real estate.

When you sell your home for more than you paid, the profit is called a capital gain. Whether you owe tax on that gain depends on how long you owned the property, whether it was your primary residence, and your income level. Most homeowners pay $0 in capital gains tax thanks to the Section 121 exclusion.

Short-term vs. long-term capital gains

If you owned the property for one year or less, the gain is short-term and taxed at your ordinary income tax rate (10-37%). If you owned it for more than one year, it qualifies for long-term capital gains rates: 0%, 15%, or 20% depending on your taxable income and filing status. For most home sales, long-term rates apply. Understanding how your mortgage amortizes helps you track your equity over time.

The Section 121 exclusion

The IRS Section 121 exclusion is the most powerful tax benefit for homeowners. If you've lived in the home as your primary residence for at least 2 of the last 5 years, you can exclude up to $250,000 (single) or $500,000 (married filing jointly) of capital gains from federal income tax. On a $450,000 sale with a $300,000 purchase price, a single filer with $150,000 in gains would owe $0 in tax.

What counts as cost basis?

Your cost basis is the original purchase price plus capital improvements plus buying closing costs. Capital improvements are renovations that add lasting value — a kitchen remodel, new roof, room addition, or new HVAC system. Routine repairs (painting, fixing a leak) do not increase your cost basis.

Depreciation recapture

If you rented out the property and claimed depreciation deductions, the IRS "recaptures" that depreciation when you sell — taxing it at a flat 25% rate. This applies to investment and rental properties, not primary residences. If you converted a rental to your primary residence, partial recapture may still apply. Consult a tax professional for complex situations.

Sell smarter. Keep more after taxes.

List for $99 flat fee. No listing agent commission.

Lower selling costs mean more money in your pocket — even if your taxable gain is slightly higher. On a $450,000 sale, Beycome sellers typically save $10,000+ compared to traditional agent commissions.

Start selling with Beycome

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Resources.

Everything you need to understand taxes when selling your home.

Tax basics

Selling your home

Mortgage & loans

Frequently Asked Questions.

Do I have to pay capital gains tax when I sell my home? +

Not always. If you lived in the home as your primary residence for at least 2 of the last 5 years, you can exclude up to $250,000 (single) or $500,000 (married filing jointly) of capital gains from taxes under IRS Section 121. Most homeowners selling a primary residence owe $0.

What is the Section 121 exclusion? +

What's the difference between short-term and long-term capital gains? +

How do I calculate my cost basis? +

What are the 2026 long-term capital gains tax rates? +

Does selling with Beycome affect my capital gains tax? +