Rollover Proceeds from Home Sale

[Kiana4ever]

Hello: I thought that if you rollover all proceeds from the sale of a home into a purchase of a new home, that you would not be taxed on those proceeds?

[Bsch4477]

Lots of people think that, maybe confusing a 1031 exchange which refers to rental property but it is not true. Capital gains income is taxed on the sale of a home but there is an exclusion of $250,000 ($500,000 if filing jointly) if qualifications are met. 

[Cynthiad66]

If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse. Publication 523, Selling Your Home provides rules and worksheets. Topic No. 409 covers general capital gain and loss information.