|
You may qualify to exclude from your income all or part of any gain from the sale of your main home/residence. Your main home is the one in which you live most of the time.
To claim the tax exclusion, you must meet the ownership and use tests. This means that during the 5-year period ending on the date of the sale, you must have owned the home for at least 2 years (the ownership test) and lived in the home as your main home for at least 2 years (the use test)
If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).
If you can exclude all of the gain, you do not need to report the sale on your tax return. If you have gain that cannot be excluded, it is taxable. Report it on the appropriate form with your tax return.
You cannot deduct a loss from the sale of your main home or residence.
Read more on the Internal Revenue Service website, Publication 523, Selling Your Home.
DISCLAIMER - You are advised to check with your tax advisor, financial advisor, legal advisor, and any other professionals before making a binding decision. This information is provided as a courtesy only. You agree to hold harmless this website and it's owners from the information herein
| 
