1. If you’ve owned and lived in your home for two
of the five years prior to selling it, you can
generally exclude up to $250,000 of the gain
from your income ($500,00o on a joint return,
in most cases).
2. You are not eligible for this exclusion if you
sold another principal residence within the
past two years and excluded the allowable gain
from your income.
3. If you can exclude ALL of the gain from the sale
of your primary residence, you don’t need to
report the sale on your tax return.
4. If you have a gain on your principal residence
that exceeds the allowable deduction, it is
5. You can’t deduct a loss from the sale of your
6. Special rules may apply when you sell a home
for which you’ve received the first-time home
buyer credit. (See IRS publication 523, “Selling
Your Home,” for details.