The rules for including the sale of your primary home are below.
If this house was your primary residence -
You
do not need to enter the sale of your primary residence if:
- You never used your primary
residence as a rental
- You have a loss on the sale
of your home (Personal capital losses are not reported on your tax return)
- You did not receive a Form
1099-S and
- You meet the home gain
exclusion (see below)
You can
take the gain exclusion as long as you considered the home your "primary
residence" for 2 of the last 5 years. If you have a capital gain from
the sale of your main home, you may qualify to exclude up to $250,000 of that
gain from your income. You may qualify to exclude up to $500,000 of that gain
if you file a joint return with your spouse. See Sale of Your Home for more
information on the exclusion.
