House Sale Taxes

Forum|Forum|3 years ago
November 16, 2022
1 reply
15 views

We sold a house in 2022 we’d owned since 2015. It was our primary residence until 2019 when we separated. Will we be liable for capital gains tax on the $100k profit?

drc845443

Level 6

Hello there!

In general, if you meet certain conditions, you can qualify to exclude up to $250,000 of your gain from the sale of your primary residence if you're filing as single, head of household, or married filing separately and $500,000 if you're married filing jointly.

To qualify for the exclusion, you must meet the following conditions:

You owned the home for a total of at least two years.
You used the home as your primary residence for a total of at least two years in last five-years before the sale.
You haven't excluded the gain from another home sale in the two-year period before the sale.

You did not give me enough information to conclude on whether you qualify to exclude the gain from the sale of your home from income for tax purposes. You indicated that you had occupied the house until 2019, but only sold it in 2022. What was the house used for from 2019 until 2022 - was it rented? If it was rented, then that may impact the amount you would be able to exclude.

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