One Time Home Sale Tax Exemption?

[mr5ohman]

Is there a once in a lifetime home sale tax exemption? (I will profit a lot on this house) If so, what are the qualifications?

thanks

 

[loku]

Gain on sale of home

The one-time exclusion of gain from the sale of your home applied to sales of homes before May 7, 1977. But there is a new exclusion that is even better in most cases:

If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases). To exclude gain, you generally must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date of sale.

The following link will take you to the IRS Publication 523, Selling Your Home. The Pub has all the info you need: http://www.irs.ustreas.gov/forms_pubs/pubs/p523toc.htm