Hey everyone, welcome back to Finance Friday on Money Girl. This is where I answer your burning money

questions. I'm going to be taking a few days off, so I'll replay a show for you. This is one that I get

asked about a lot. It has to do with capital gains and what that means for the taxes you pay

when you sell your home. In fact, the show you'll hear today

was the very first topic that I covered on the Finance Friday edition of the show. So let's revisit

episode 826 where I answer a question from Al about what taxes to expect with the sale of a home.

And I'll be back next week with a brand new

finance Friday topic. A listener named Al asks, I plan to sell my primary residence for

$1.5 million, with a profit of $1 million, which will get reduced

to $750,000 after claiming the $250,000 capital gains exemption. If I buy a much smaller house

for $600,000, am I still taxed on the $750,000 of profit?

Thanks for the question, Al.

I'm going to answer it today on the show's first Friday Q&A episode.

I'm Laura Adams, an author, spokesperson speaker, founder of the Moneystack newsletter,

and host of the Money Girl podcast with 43 million downloads.

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And if you've got a question that you'd like me to cover here on a Friday Q&A episode,

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You can also send me an email using my contact page at laura d adams.com.

All right, so let's talk about capital gains and losses and get to Al's question.

But first, I want to review what capital gains are

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