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posted Jun 6, 2019 1:45:50 AM

Are the earnings from the sale of a primary home eligible for a one-time exemption?

We sold our primary home after living there or 40+ years. No business use. I was under the impression that the earnings would not be taxable based on the one-time exemption. Is this correct? The IRS publications I have read (523) does not corroborate my understanding.

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1 Replies
Level 10
Jun 6, 2019 1:45:52 AM

The one-time exemption has not been the law for a long time. That provision has been replaced with a more complicated exclusion of up to $250,000 gain (not sale price) exclusion if you qualify. (usually $500,000 if you are married.)

Details are here:

http://www.nolo.com/legal-encyclopedia/the-250000500000-home-sale-tax-exclusion.html

For how to enter in TT, see this:

https://ttlc.intuit.com/questions/2744791-where-do-i-report-sale-of-primary-home