Hi Susan!
Fortunately, most of the profit of your home can be excluded from your income.
You won't be taxed on most of the profit if you have lived in the home for 2 out of the last 5 years. Sounds like you meet that one! Since you meet that requirement, you are able to exclude up to $250,000 of the profit of the sale. If you are married and file a joint return, that amount goes up to $500,000.
The profit is determined by taking your sales price of the home and subtracting your original purchase price plus any expenses of your sales like realtor fees.
While the profit from your home sale can be taxed as gains, the losses are not tax deductible as they are deemed personal losses.
How does selling a home affect my taxes?
