Federal Tax, Tax

Claiming a Tax Exclusion on Your Home Sale

Summer will be here in just a few weeks, and that’s a time when many people move. If moving includes selling your home, at tax filing time you may qualify to exclude some or all gain from the sale. To claim the exclusion, you must meet ownership and use tests: During the five-year period ending on the date of sale, you must have owned the home and lived in it for at least two years. If qualified, you may be able to exclude a capital gain of up to $250,000 from your income ($500,000 if you file a joint tax return with your spouse). This exclusion is available on your main home only, and a loss isn’t deductible. Additional rules apply and some exceptions exist. Contact us with questions. © 2024