People who haven’t sold a home in decades are sometimes afraid to sell because of all the taxes they fear they will have to pay… over $100,000 is a lot of capital gain!
Not everyone knows that most home-sale profit is now tax free. If you have lived in your home for two of the past five years before the sale, up to $250,000 is tax-free for a single person and up to $500,00 is tax-free for a couple. You can use this exclusion every time you sell a primary residence and haven’t claimed the exclusion on another home in the last two years.
If you meet these requirements, they won’t issue an IRS Form 1099-S at closing and you don’t have to report it on your income tax.
Get more info about taxes and the sale of your home directly from the IRS.
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