Tax Implications of Selling Your House for Cash in Fort Worth
A cash sale is not taxed differently than a financed sale — but the speed can catch sellers off guard at tax time. Here's a plain-English rundown of what to expect. Talk to a CPA before closing if the numbers are large.
Federal capital gains
Primary residence exemption: single filers exclude up to $250k of gain, married filing jointly up to $500k, if you lived there 2 of the last 5 years. Most Fort Worth sellers pay $0 federal on a primary home.
Investment properties don't get this exemption. Consider a 1031 exchange if you're rolling into another investment property.
Texas transfer taxes
Texas has no state transfer tax, which is one of the advantages of selling here. Title insurance and recording fees still apply, but cash buyers typically cover all closing costs.
1099-S at closing
Title companies issue a 1099-S reporting the sale to the IRS. It arrives in January — do not miss it on your return even if the sale is tax-free.