Hello,
Thank you for participating. I am assuming that you meant to say that you purchased the house in 2014 and sold in 2022.
The law lets you "exclude" this profit from your taxable income. (If you sold for a loss, though, you can't take a deduction for that loss.)
- You can use this exclusion every time you sell a primary residence, as long as you owned and lived in it for two of the five years leading up to the sale, and haven't claimed the exclusion on another home in the last two years.
- If your profit exceeds the $250,000 or $500,000 limit, the excess is reported as a capital gain on Schedule D.
Any major renovations done to the house get added to the adjusted cost of the house for calculating the gain. Since I do not have information such as your filing status and if you lived in the house for 2 out of the five prior years, I cannot say how much of the capital gains will be taxable.
For more information, please see the attached article.
Tax Aspects of Home Ownership: Selling a Home
