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CONGRATS ON THE SALE OF YOUR HOME.

Now that that’s over and done with let’s talk about the tax part of sal­ing your home. I know your think­ing headache but for the most part you prob­a­bly don’t even have to report it. sale of homesale of home

Did you know if you owned and lived in the place for two of the five years before the sale, then up to $250,000 of prof­it is tax-free.If you hap­pen to be mar­ried and you two file a joint return you get dou­ble the amount so 500,000 of the prof­it is tax free. The Irs allows you to exclude it from your tax­able income. Only thing is if you sold and actu­al­ly sold for a loss you can’t deduct that loss.

You can use this exclu­sion every time you sell a pri­ma­ry res­i­dence, as long as you owned and lived in it for two of the five years lead­ing up to the sale, and haven’t claimed the exclu­sion on anoth­er home in the last two years.

If your prof­it exceeds the $250,000 or $500,000 lim­it, the excess is report­ed as a cap­i­tal gain on form Sched­ule D.

You can use this exclu­sion every time you sell a pri­ma­ry res­i­dence, as long as you owned and lived in it for two of the five years Before you actu­al­ly sale the home and you haven’t claimed the exclu­sion on anoth­er home in the last two years.
So in order to get the exclu­sion There are three tests you must meet in order to treat the gain from the sale of your main home as tax-free:

TASHA WANTS YOU TO CHECK THIS OUT~  DEADLINES APPROACHING

TIME you lived in the home as well as time it’s been since u last sold home.

OWNERSHIP- you owned it 2 out of 5years

Res­i­dence- It was your pri­ma­ry res­i­dence

THERE ARE A FEW MORE THINGS TO TAKE INFO CONSIDERATION SUCH AS