Deferred Gain On Sale Of Home

AAA

DEFINITION of 'Deferred Gain On Sale Of Home'

An obsolete tax law that applied to homeowners before May 7, 1997. The Deferred Gain on Sale of Home rule mandated that those who realized a capital gain on the sale of their residences could defer this gain if the sale proceeds were used to purchase a more expensive home. This tax deferral was called a rollover.

INVESTOPEDIA EXPLAINS 'Deferred Gain On Sale Of Home'

The Deferred Gain on the Sale of Home rule was superseded by the Tax Relief Act of 1997. The law now states that all homeowners can exclude up to $250,000 of capital gain on the sale of their residences from taxation unconditionally. Married couples filing jointly can exclude up to $500,000.

RELATED TERMS
  1. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  2. Main Home

    A term used by the Internal Revenue Service (IRS) to define the ...
  3. Principal Residence

    The primary location that a person inhabits. It doesn't matter ...
  4. Deferred Tax Asset

    A deferred tax asset is an asset on a company's balance sheet ...
  5. Buffett Rule

    A tax rule proposed in 2011, by President Barack Obama, stating ...
  6. Benefits Received Rule

    1. A theory of income tax fairness that says people should pay ...
Related Articles
  1. Home & Auto

    5 Tips For Recession House Hunters

    Follow these five tips to get a leg up on rival bargain hunters.
  2. Taxes

    Will Your Home Sale Leave You With Tax Shock?

    Learn how the newest tax laws apply to the proceeds you earn.
  3. Home & Auto

    Closing A Real Estate Deal In A Down Market

    We provide top tips on how to help sell your home in a rough market.
  4. Investing

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

    It is true in most cases. When you sell your home, the capital gains on the sale are exempt from capital gains tax. Based on the Taxpayer Relief Act of 1997, if you are single, you will pay no ...
  5. Retirement

    I sold my house. Can I exclude the gain from my income?

    Generally, you are required to include the gain from the sale of your home in your taxable income. However, if the gain is from your primary home, you may exclude up to $250,000 ($500,000 for ...
  6. Taxes

    How much will it cost to hire an accountant to do my taxes?

    Find out how much it costs to hire an accountant and what benefits and services you can expect from your accountant.
  7. An article explaining the Federal Tax Brackets, how and why they were stablished, what is the logic behind them and where an user can find the most current ones
    Taxes

    Federal Tax Brackets

    Why do we have income tax brackets? What do they do for us? Read this to understand the basics and where to find your own bracket.
  8. Taxes

    After-Tax Balance Rules For Retirement Accounts

    Accumulating post-tax assets can work to your advantage. Find out how.
  9. Taxes

    Changes In Tax Legislation And Regulation

    Keeping on top of these amendments can help you avoid penalties and take advantage of benefits.
  10. Taxes

    10 Sources Of Nontaxable Income

    Taxes are often a deterrent from investing and saving. These financial practices will bring you no tax grief.

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center