Deferred Gain On Sale Of Home

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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.

BREAKING DOWN '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The Deferred Gain on the Sale of Home rule was superseded by the Tax Relief Act of 1997.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.

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RELATED FAQS
  1. 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 ... Read Full Answer >>
  2. 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 ... Read Full Answer >>
  3. What is the difference between comprehensive income and gross income?

    Comprehensive income and gross income are similar, but comprehensive income is a specific term used on a company's financial ... Read Full Answer >>
  4. What tax breaks are afforded to a qualifying widow?

    The tax breaks accorded to qualifying widows or widowers include being able to use a tax filing status that allows for a ... Read Full Answer >>
  5. How is income taxed on prorated salary?

    Since yearly income is viewed by the Internal Revenue Service (IRS) as the total amount of income a person has made over ... Read Full Answer >>
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    Any basic, reasonably necessary expenses incurred in running a business can be considered possible write-offs. Such expenses ... Read Full Answer >>

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