The IRS has some good news for taxpayers who are selling their home. When filing their taxes, they may qualify to exclude all or part of any gain from the sale from their income. Here are some thing that homeowners should think about when selling a home:
- Ownership and use- To claim the exclusion, the taxpayer must meet ownership and use tests. During a five-year period ending on the date of the sale, the homeowner must have owned the home and lived in it as their main home for at least two years.
- Gains- Taxpayers who sell their main home and have a gain from the sale may be able to exclude up to $250,000-$500,000 of that gain from their income.
- Losses- Some taxpayers experience a loss when their main home sells for less than what they paid for it. This loss is not deductible.
- Possible exceptions- There are exceptions to these rules for some individuals, including persons with a disability, certain members of the military, intelligence community and Peace Corps workers.
If you need tax help, call our office at 816-524-4949 or visit our website at Hoorfarlaw.com