What are the tax exemptions for selling my home?

What are the tax exemptions for selling my home?

When you sell your home, you may qualify for a capital gains tax exemption. If you meet certain criteria, you can exclude up to $250,000 of gain from your income, or $500,000 if you're married filing jointly.

What are the criteria to qualify for this exemption?

To qualify, you must have owned and lived in the home for at least two of the last five years before the sale. Additionally, you cannot have claimed the exemption on another home sale in the last two years.

Are there any exceptions to these rules?

Yes, there are exceptions for certain situations, such as if you are selling due to a job change, health issues, or other unforeseen circumstances. These may allow you to qualify for a partial exemption.

How do I report this on my taxes?

You report the sale on IRS Form 8949 and Schedule D. Make sure to keep records of your purchase price, improvements, and selling expenses to accurately calculate your gain.