Is it true that you can sell your home and not pay capital gains tax?

Real Estate, Taxes
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5 weeks ago
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It is true, but depending on several factors, such as marital status, the profit you made, and how long you have lived in the house. For married filing jointly, they can dodge the capital gain tax for the profit of $500K. For single, the capital gain is limited to only $250K. Besides the marital status and profit amount exclusion, IRS stipulates two other restrictions-- the ownership test and the use test. You are eligible for the aforementioned profit exclusion if you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale. You may go to the IRS website and search for the publication 523 for the complete eligibility requirements, limitations on the exclusion amount, and exceptions to the two-year rule. Best!

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January 2006
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