The capital gains tax in Texas allows some relief or deductions on the profit. The Tax Payer Relief Act of 1997 provides this benefit to the tax-payers. According to this rule, the single home-owner can make a profit of not more than $250,000 by selling a property. This amount is totally relieved from any type of capital gains tax. The amount for Married couples is $500,000 as long as they file their taxes jointly
- The applicant for capital gains tax exclusion must be the owner of the property for at least five years before selling
- He or she must have resided in the particular house for at least two years, which should be within the span of last five years from the year of selling
- Married couples should have stayed in the house for not less than two years
- The capital tax exclusion in Texas is allowed once in two years
- If any member of a married couple has enjoyed the benefit in the last two years, the other is not allowed to use the relief within the same time span.