Single taxpayers can exclude up to $250,000 of capital gains on the sale of a home, and married taxpayers filing jointly can exclude $500,000.
Taxpayers are eligible for the exclusion if they have owned and used a home as their main home for a period aggregating at least two years out of the five years prior to its date of sale. The exclusion is allowed each time that you sell a primary residence but no more than once every two years.
For more information, see http://www.irs.gov/taxtopics/tc701.html
We would like your feedback on this Personal Finance Frequently Asked Question.
eXtension is an interactive learning environment delivering the best, most researched knowledge from the smartest land-grant university minds across America.
Your donation keeps eXtension growing.Give Now