I live in Illinois (if that is relavant)
2007-07-10 03:33:00 · 2 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
You must own and live in the home as your principal residence for 2 of the 5 years immediately prior to the sale to qualify to exclude the gain from tax. The exclusion amount depends upon your filing status -- $250k if Single and $500k if Married Filing Jointly.
2007-07-10 03:39:14 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
2 out of 5 years is the simple answer, but there are other exclusions for under 2 years. If it is a job related move greater than 50 miles you can exculde a prorated amount based on the amount of time you lived there. There is also health problems and other unforseen circumstances. You do have to live in the house for any of these exemptions. See IRS publication 523 for a complete explanation of sale of a house. It's long, but if you read it you might several thousand of dollars in taxes.
2007-07-10 04:20:41 · answer #2 · answered by Reddy492 2 · 1⤊ 0⤋