How will a home sale effect my taxes

TWTtax · ‎November 16, 2022

PerpetuaSG · ‎November 16, 2022

You won't pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home. If you're Married Filing Jointly, you won't pay taxes on the first $500,000.

That income is free and clear as long as:

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 and sell as many primary homes as you'd like, but you'll only get this tax benefit every two years.

When you sell a second home, the tax situation is different.
You can find more information on the tax implication of selling your home here

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