Home sale

[Unique5819]

I my wife and I sold our homes this year do we have to pay taxes come income tax time 

[ee-ea]

See this IRS publication  https://www.irs.gov/publications/p523

[Loretta P · Accepted solution]

Hello Hotreynas1985.  If I understand your question, you both sold a home so two home sales.  

On the sale of the first home, the capital gain on the first $250,000 you make from the sale of your home (or the first $500,000 if you're Married Filing Jointly) can be excluded if you meet the following criteria:

• You owned the home
• It was your main home for two years or more within the five years leading up to the sale
• You waited at least two years between selling your primary home and excluding your first $250,000 or $500,000 from taxes. In other words, you may buy/sell as many primary homes as you'd like, but you'll only qualify for this tax benefit every two years.

The sale of the second home would be considered sale of investment property and that is handled differently.  It would be entered in the investment section to properly report the gain.

Is the money I made from a home sale taxable? 

How does selling a home affect my taxes? 

Where do I enter the sale of a second home, an inherited home, or land on my 2022 taxes?