Sale of a Principal Residence

Understand the tax implications of selling your main home with this guide. It covers key aspects such as the conditions under which you can exclude gain from the sale, the eligibility requirements for both individual and married homeowners, and special considerations for surviving spouses and those experiencing unforeseen circumstances.

Highlights:

• Exclusion of Gain: Potential to exclude up to $250,000 ($500,000 for married couples) of gain if specific ownership and use tests are met.

• Ownership and Use Rules: Basic requirements for how long you must have owned and used the home to qualify for the exclusion.

• Special Circumstances: Provisions for partial exclusions in cases of employment changes, health issues, or unforeseen events.

• Sale of Adjacent Land: Guidelines on how the sale of land adjacent to your home may be treated for tax purposes.