Please verify whether you are talking about a home that you used as your primary home. If so, all the answers above are correct. Also, did you live in it for at least 2 out of the last 5 years before selling it? If it was an investment property, such as a rental, you can count the cost of your paint and cleaning supplies as part of the expense of renting it, which would reduce the rental income for 2021. Did you do a 1031 exchange to use the old funds when you purchased the new home? And will the new home be one you live in or one you plan to rent or flip? Answers to these questions will help.
One more question. If you did a 1031 exchange, how much less did the new home cost than the old home sold for?
