Tax Guidelines for Home Sellers

Tax Guidelines for Home SellersYou are allowed to exclude gain on your personal residence if you own and have lived in your home for two of the five years prior to selling. The amount from gain that can be excluded is up to $250,000 for an individual and up to $500,000 for a couple. The gain that exceeds the allowable deduction is taxable.

You are not eligible for this exclusion if you sold another principal residence within the past two years and excluded the allowable gain from that sale. If you received the first-time home buyer credit when purchasing the home special rules may apply (check with your trusted tax advisor).

You are not allowed to deduct a loss from the sale of your primary residence. Check with your trusted tax advisor to see how the above guidelines apply to your situation.

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