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Level 1
posted Sep 28, 2022 9:34:47 AM

Capital gains on sale of home

This year we sold our primary residence and realized a net gain in excess of $500,000. We file as married filing jointly. Will we owe capital gains tax? Is there any way to avoid it?

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1 Replies
Employee Tax Expert
Sep 28, 2022 9:47:04 AM

Hi JACQUESRABITTE

 Thanks for your question. So the exclusion amount for a married couple filing jointly is 500,000. You can exclude up to that amount under the following conditions: You must have owned and used the home for 2 of the prior 5 years and you can only use the exclusion once every two years. Any gain over 500k will be taxable. https://turbotax.intuit.com/tax-tips/home-ownership/tax-aspects-of-home-ownership-selling-a-home/L6tbMe3Dy   Thanks for your question!