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This publication explains the tax rules that apply when you sell your main home. Generally, your main home is the one in which you live most of the time. If you sold your main home in 2009, you may be able to exclude from income any gain up to a limit of $250,000 ($500,000 on a joint return in most cases).
Does Your Home Sale Qualify for the Exclusion of Gain? The tax code recognizes the importance of home owner-ship by allowing you to exclude gain when you sell your main home. To qualify for the maximum exclusion of gain ($250,000 or $500,000 if married filing jointly), you must meet the Eligibility Test, explained later. To qualify for a
Single taxpayers or those married filing separately generally can exclude up to $250,000 of the gain from the sale or exchange of a home ($500,000 for married taxpayers filing jointly).
A home sale often doesn’t affect your taxes. If you have a loss on the sale, you can’t deduct it from income. But, if you make a profit, you can often exclude it. This is called “home sale exclusion”, or less commonly “sale of a personal residence exclusion”.
The Home-Sale Exclusion: A Proposal Targeted at Eliminating Speculation Andrew Gahan* “Tonight I propose a new tax cut for homeownership that says to every middle income working family in this country, if you sell your home, you will not have to pay a capital gains tax on it ever, not ever.”
Current Law. When an individual sells a personal residence, the excess of the sales price over the taxpayer’s basis is a capital gain. Basis is original cost plus improvements (but not repairs and maintenance) plus the cost of the sale.
22 kwi 2024 · The home sale tax exclusion allows individuals who sell their principal home to exclude from their taxable income up to $250,000 of the gain from the sale, or up to $500,000 if the sellers are a married couple who file a joint return.
