Use the Internal Revenue Service (IRS) primary residence exclusion, if you qualify. For single taxpayers, you may exclude up to $250,000 of the capital gains, and for married taxpayers filing jointly, you may exclude up to $500,000 of the capital gains (certain restrictions apply).1.
What are the two rules of the exclusion on capital gains for homeowners?
Sale of your principal residence. We conform to the IRS rules and allow you to exclude, up to a certain amount, the gain you make on the sale of your home. You may take an exclusion if you owned and used the home for at least 2 out of 5 years. In addition, you may only have one home at a time.
What is the home sale exclusion for sales after May 6 1997?
Exclusion for sales after May 6, 1997.
If you sell your main home after May 6, 1997, you may be able to ex- clude any gain from income up to a limit of $250,000 ($500,000 on a joint return in most cases).
What is the IRS home sale exclusion?
Taxpayers who sell their main home for a capital gain may be able to exclude up to $250,000 of that gain from their income. Taxpayers who file a joint return with their spouse may be able to exclude up to $500,000.
How many times can you take the home sale exclusion?
You're only allowed to exclude gain on the sale of a home once every two years. This is true unless the reduced gain exclusion rules apply.
Which property would most likely qualify for a short sale?
- The home has to be worth less than what the homeowner owes on it.
- The seller must be able to prove financial hardship.