- If you’ve owned and lived in your home for two of the five years prior to selling it, you can generally excluded up to $250,000 of the gain from your income ($500,000 on a join return, in most cases).
- You are not eligible for this exclusion if you sold another principal residence within the past two years and excluded the allowable gain from your income.
- If you can exclude ALL of the gain from the sale of your primary residence, you don’t need to report the sale on your tax return.
- If you have a gain on your principal residence that exceeds the allowable deduction, it is taxable.
- You can’t deduct a loss from the sale of your primary residence.
- Special rules may apply when you sell a home for which you’ve received the first-time home buyer credit. (See IRS publication 523, “Selling Your Home,” for details.)
6 Tax Facts Home Sellers Should Know
November 6, 2012 by