Monday, September 20, 2010

What to Know About Home-Sale Tax Rules - WSJ.com



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 (www.irs.gov).


What to Know About Home-Sale Tax Rules - WSJ.com