Will I pay capital gain taxes? i am looking to sell my home, resulting in an approximate gain of 138,000., (after the exclusion how do I figure the taxes on it?

[eileennb]

How do I apply 138,000 home sale gain to my current tax return??

[tagteam · Accepted solution]

If you owned and used the home as your main home for at least two out the five-year period prior to the date of sale, and did not exclude another home during that two year period, then you can exclude up to $250,000 ($500,000 if married filing jointly) of gain from the sale.

See https://www.irs.gov/taxtopics/tc701

TurboTax will walk you through the process, Step-by-Step, of entering the transaction in the Sale of Home section.

You're eligible for the exclusion if you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale. You can meet the ownership and use tests during different 2-year periods. However, you must meet both tests during the 5-year period ending on the date of the sale. Generally, you're not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.