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You\u2019ve sold your home and made a nice profit on the sale. So you may be wondering if Uncle Sam is entitled to a cut. Although gain on a home sale is potentially taxable, you may qualify for a federal income-tax exclusion.<\/p>\nYou\u2019ve sold your home and made a nice profit on the sale. So you may be wondering if Uncle Sam is entitled to a cut. Although gain on a home sale is potentially taxable, you may qualify for a federal income-tax exclusion.<\/p>\n
The Rules in General<\/strong><\/p>\n If you\u2019re a single taxpayer, you may qualify to exclude gain of up to $250,000 if you owned<\/em> the home and used it as your principal residence<\/em> for at least two of the five years before the sale. Married couples who file jointly may exclude up to $500,000 of gain as long as one spouse owned the home — and both spouses used the home as a principal residence — for two of the last five years.<\/p>\n The Frequency Factor<\/strong><\/p>\n The exclusion is generally available to sellers only once during a two-year period. A married couple is entitled to the $500,000 exclusion only if neither<\/em> partner used the exclusion within the two-year period that ended on the sale date.<\/p>\n Reduced But Available<\/strong><\/p>\n Even if you don\u2019t meet the criteria described above, you may still qualify for a reduced exclusion (of less than $250,000 or $500,000) if the primary reason for the home sale was a change in the location of your employment, a health condition, or certain other “unforeseen” circumstances. The affected individual can be you, your spouse, a co-owner of the residence, or a person sharing your household. You may also qualify for the reduced exclusion if you sell your home to care for a sick family member.<\/p>\n Additional restrictions on gain exclusion may apply if you\u2019ve rented out your home, maintained a home office, or turned a second home into a principal residence.<\/p>\n For more help with individual or business taxes, connect with us today. Our team can help you with all your tax issues, large and small.<\/p>\n","protected":false},"excerpt":{"rendered":" You\u2019ve sold your home and made a nice profit on the sale. So you may be wondering if Uncle Sam is entitled to a cut. Although gain on a home sale is potentially taxable, you may qualify for a federal income-tax exclusion. The Rules in General If you\u2019re a single taxpayer, you may qualify to […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[33,50,51],"_links":{"self":[{"href":"https:\/\/www.chahalassociates.com\/blog\/wp-json\/wp\/v2\/posts\/82"}],"collection":[{"href":"https:\/\/www.chahalassociates.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.chahalassociates.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.chahalassociates.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.chahalassociates.com\/blog\/wp-json\/wp\/v2\/comments?post=82"}],"version-history":[{"count":1,"href":"https:\/\/www.chahalassociates.com\/blog\/wp-json\/wp\/v2\/posts\/82\/revisions"}],"predecessor-version":[{"id":84,"href":"https:\/\/www.chahalassociates.com\/blog\/wp-json\/wp\/v2\/posts\/82\/revisions\/84"}],"wp:attachment":[{"href":"https:\/\/www.chahalassociates.com\/blog\/wp-json\/wp\/v2\/media?parent=82"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.chahalassociates.com\/blog\/wp-json\/wp\/v2\/categories?post=82"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.chahalassociates.com\/blog\/wp-json\/wp\/v2\/tags?post=82"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}