You won't pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home (or the first $500,000 if you're Married Filing Jointly).
That income is free and clear as long as:
- You owned the home.
- It was your main home for two years or more within the five years leading up to the sale.
- You waited at least two years between selling your primary home and excluding your first $250,000 or $500,000 from taxes. In other words, you may buy and sell as many primary homes as you'd like, but you'll only get this tax benefit every two years.
Tax aspects of selling a home
Federal taxes if applicable will not be due until the filing date of your tax return ie. April 15th 2025. However; states may have different rules on withholding from the sales proceeds like California.
Have an amazing day. Evelyn M (CPA 20+ years)
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