If you have made a capital gain from the sale of your main home, you may be eligible to exclude all or part of the gain from your income. The Internal Revenue Service issued a pamphlet, Publication 523, Selling Your Home, which provides directions, rules, and requirements for filing capital gains when selling your home. The pamphlet gives thorough instructions on how to determine whether or not you qualify for the exclusion.
The general requirements include:
- The home sold is considered your main home – “main home” is defined in the pamphlet as the home you lived in the majority of the year whether it is a house, condo, cooperative apartment, mobile home, or houseboat.
- You have lived in the home at least two of the past five years
- Additionally, you are allowed to exclude up to $250,000 of the gain on the sale of your main home if you file as an individual; or up to $500,000 if filed jointly.
Generally, the income exclusion is allowed if these requirements are met unless: you have excluded the gain from a prior home within two years prior of the current sale; you only sold the land on which your main home is located, but not the house itself, or; you sold the remainder interest in your home to a related person.
If you or a loved has legal concerns regarding the sale of your home call Blick Law Firm today at (813) 931-0840. Schedule a free 15-minute consultation with attorney Michael Blickensderfer. Think quick, call Blick.
For more information regarding the IRS Publication 523 visit: www.irs.gov/pub523.