Hello there,
Since you owned your home for more than 1 year, your gain on the sale is considered a long-term gain.
You may be able to exclude the gain from taxable income up to $250,000 of your gain if you're filing as single, head of household, or married filing separately and $500,000 if you're married filing jointly.
In order to qualify to exclude the gain;
- You owned the home for a total of at least two years.
- You used the home as your primary residence for a total of at least two years in last five-years before the sale.
- You haven't excluded the gain from another home sale in the two-year period before the sale.
In the event that you do not qualify to exclude the gain from taxable income, you would have to pay capital gains tax at rates dependent on your taxable income. Please see section entitled "What is the 2022 long-term capital gains tax rate?" in the link below:
https://turbotax.intuit.com/tax-tips/investments-and-taxes/guide-to-short-term-vs-long-term-capital-...
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