7 Tax Tips for Selling Your Home

According to the IRS, there are a few tax tips that you homeowners should keep in mind when trying to sell your home.

  1. You may be able exclude the gain from your home sale from your income if the property was your main home for two years out of the five years prior to the sale date.
  2. If you have gain, you may be able to exclude up to $250,000 of the gain from your income.
  3. However, if you have excluded the gain from the sale of another home in the last two years, you will not be eligible for an exclusion for your current sale.
  4. If you are ineligible for excluding your gain, you must report it on Form 1040, Schedule D, Capital Gains and Losses for tax purposes.
  5. If you have a loss from the sale of your home, it is not deductible
  6. Publication 523 contains worksheets that can help you figure the adjusted basis of the home you sold, the gain or loss you received from the home sale, and excludable gain.
  7. Only your main home is available for gain exclusions

For more tax tips, click here.

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