sold house

[PeggyPat]

I sold my house this year for $225,000. At 81 I am now renting. Is it true that a sale under $250,000 is not taxed?

[LJane29]

As long as you lived in the house as your primary home for 2 of the last 5 years then yes, it would be tax free.  The actual rule is that up to $250,000 in gain (per person, so can be up to $500,000 if married filing joint) on the sale of a primary home is tax free.  You can't have sold another primary home in the last 2 years to get this exclusion.

In your case, even if your basis (what you paid for the house) was $0 you are under the limit.