Congratulations on your retirement.
The sale of your home may cause an additional tax liability. There is an exclusion if you meet the following tests.
1) Have you lived in the home as a primary residence at least 2 of the past 5 years before the sale?
2)Have you owned your home for at least 2 years out of last 5 years leading up to sale?
If yes to both of these questions then you qualify for exclusion of some of the profit. For Married Filing Joint the exclusion amount is $500,000.00. Single/Married Filing Separately the amount is $250,000.00.
This means that you can sell your home for a profit up to that threshold and have no tax liability. In order to find the profit you would take your purchase price + any capital improvements - Selling price - selling costs.
I am including a link that the IRS has on home sales for additional information.
https://www.irs.gov/publications/p523
I hope it helps, please let us know if you have any additional questions.
Enjoy your day!!
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