701

This is a complete exclusion, meaning you don't even have to reinvest the money into a new house to keep the profit tax-free. Core Requirements for the Benefit

: Can exclude up to $500,000 of capital gains. This is a complete exclusion, meaning you don't

: You generally cannot have used the exclusion for another home sale in the two years prior to the current sale. Important "Gotchas" and Nuances 000 / $500

In federal taxation, specifically addresses the Sale of Your Home , a critical subject for anyone looking to understand the tax implications of selling a primary residence. The $250,000 / $500,000 Exclusion This is a complete exclusion

The centerpiece of Topic 701 is the , which allows homeowners to sell their primary residence and exclude a massive portion of their profit from federal income tax: Single Filers : Can exclude up to $250,000 of capital gains.

To qualify for this exclusion, you generally must meet two main tests within the ending on the date of the sale:

: If you used part of your home for business or rented it out, special rules apply that might limit your exclusion.