Yes. if you qualify for the exclusion, the amount over and above will be taxed as a capital gain for personal primary residence.
The exclusions are $250,000 for
single, and $500,000 for married filing jointly. See the rules below.
Does
Your Home Sale Qualify for Maximum Exclusion
The tax code recognizes the importance
of home ownership by providing certain tax breaks when you sell your home. To
qualify for these breaks, your home must meet the Eligibility Test , which is explained later.
The type of home involved is
less important. A single-family home, condominium, cooperative apartment,
mobile home, or houseboat can all count as a home.
How your sale qualifies. Your
sale qualifies for exclusion of $250,000 gain ($500,000 if married filing
jointly) if all of the following requirements are met.
- You owned the home and used it as your main home during
at least 2 of the last 5 years before the date of sale.
- You didn’t acquire the home through a like-kind
exchange (also known as a 1031 exchange), during the past 5 years.
- You didn’t claim any exclusion for the sale of a home
that occurred during a 2-year period ending on the date of the sale of the
home, the gain from which you now want to exclude.
Enter
a primary house sale under:
- Federal Taxes (Personal in
Home & Business)
- Wages and Income (Personal
Income in Home & Business)
- Choose "I'll choose what
I work on"
- Scroll down to the last
section - Less Common Income
- Sale of Home - Click the
Start or Update button
