I’ve been told that Capital gains taxes no longer apply on the sale of your primary home if you make over $250,000 (single) in profit, is this true?

[Bsch4477]

You are probably referring to the home capital gains exclusion which has nothing to do with your income. 

To be exempt from capital gains tax on the sale of your home, the home must be considered your principal residence based on Internal Revenue Service (IRS) rules. These rules state that you must have occupied the residence for at least 24 months of the last five years.

[rjs]

No, it's not true. "Been told" is not a reliable source of tax information.

If you owned and lived in the home for two of the five years preceding the sale, you can exclude up to $250,000 of the profit from tax. Any profit over $250,000 is taxable. Whoever told you that the taxes "no longer apply" might have been confused about this rule, or you might have misunderstood what the person said.

There are lots more details to the requirements for the exclusion. If you are thinking of selling your home, take a look at IRS Publication 523, Selling Your Home.

[xmasbaby0]

SALE OF HOUSE

If your gain was more than  $250,000 filing Single, or more than $500,000 filing Married Filing Jointly the sale must be reported on your tax return.  Whether you re-invested the gain in to another house is irrelevant.  If you  have a Form 1099-S go to Federal>Wages and Income>Less Common Income>Sale of Home (gain or loss)

If you owned and lived in the home as your primary residence for at least 2 of the last 5 years on the date of the sale, you do not have to report the home sale if the gain is less than $250K filing Single, or less than $500K filing Married Filing Jointly (and you both owned and lived in the home for at least 2 years).

• If you are using online TT, you need Premium software to report the 1099-S

NOTE:   If you have ever used the home as rental property or claimed a home office, you have more information to enter