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Archive for November 1st, 2019

Tax Information When Selling Your Home

Friday, November 1st, 2019

If you sell your primary residence you may qualify to exclude all or part of any gains from your income. In the year you sell your home, you may need to report the gain or loss on the Schedule D of your tax return. If you received a Form 1099-S then the sale needs to be reported on your tax return even if there is no gain. To be on the safe side you can report the sale even if you didn’t receive a 1099-S and you had no gain.

The main question is will you pay taxes on your gains or not?

In order to qualify for the exclusion, you need to meet the ownership and use test. The rule is that during a five-year period 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. If you meet this requirement, you may be able exclude up to $250,000 of the gain from your income. If you file a joint return with your spouse you may qualify for an exclusion of $500,000. Also please keep in mind that if you have a loss as a result of selling your primary residence, you cannot deduct the losses.

Please consult your tax advisor on all the above issues and to see if you qualify for this exclusion.