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Report the sale of the business or rental part on Form 4797. Note that space formerly used as business or rental will qualify for exclusion under section 121 if the use was converted to personal use for a total of 2 years, as long as the personal use was within the 5 years leading up to the sale.
If you have a taxable gain on the sale of your main home that you can’t exclude, report the entire gain on Form 8949. If you have a loss on the sale of your main home and received a Form 1099-S, report the loss on Form 8949.
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).
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).
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 · You might owe capital gains tax if you sell a home if the property's value has appreciated. However, if you sell your principal home, you may exclude from your taxable income up to $250,000 of the gain from the sale (up to $500,000 if you're married and file a joint return.)
Publication 523, provided by the IRS, guides homeowners on the tax implications of selling their primary residence. It explains eligibility for gain exclusion, calculating gain/loss, reporting requirements, and more.
