Let’s say your home has appreciated in value since you bought it many years ago. You want to sell the property and convert the equity into an income-producing investment. But there’s one problem: The amount of gain is expected to be much more than the $250,000 that you can pocket tax free under the tax law ($500,000 for married couples filing jointly.) You have to pay taxes on the profit above that amount. But there might be a strategy to avoid this situation. READ MORE