Monday, September 20, 2010

What to Know About Home-Sale Tax Rules -

I didn't see this yesterday on the Wall Street Journal's blog but it came across Twitter today.

Thought it was a pretty useful summary of capital gains taxes on home sales (if you're lucky enough to still have a gain!). Here's a sample:

Here is how the basic rules work: In the late 1990s, then-President Bill Clinton signed legislation that officials said at the time would eliminate capital-gains taxes for most people who sell their primary home for a profit. That legislation generally allowed most sellers to exclude a gain of as much as $500,000 (if married and filing jointly) or as much as $250,000 (if single).

To qualify for the full exclusion, you typically must have owned the home -- and used it as your primary residence -- for at least two of the five years prior to the sale. For more details, see IRS Publication 523 ("Selling Your Home") on the Internal Revenue Service website (

What to Know About Home-Sale Tax Rules -