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Sale of Residence - Real EstateTax Tips
I am surprised all the time by home owners who do not realize that they may not have to pay taxes on the sale of their home. Here are some helpful Sale of Residence - Real Estate Tax Tips thanks to the irs.gov website. Buyers & Sellers should seek the advise of a tax professional if they have any questions.
Sale of Residence - Real Estate Tax TipsYou may qualify to exclude from your income all or part of any gain from the sale of your main home. Your main home is the one in which you live most of the time.
Ownership and Use TestsTo claim the exclusion, you must meet the ownership and use tests. This means that during the 5-year period ending on the date of the sale, you must have:
Owned the home for at least two years (the ownership test) Lived in the home as your main home for at least two years (the use test) GainIf you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).
If you can exclude all of the gain, you do not ... more
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