SALE OF PERSONAL
In most cases, the gain on the sale of a principal residence is exempt from taxation.
To be defined as the taxpayer’s principal residence, the taxpayer must have owned the home and used it as his/her principal residence for at least two years during the 5-year period ending on the date of sale.
The amount of gain on a personal residence that can be excluded from taxable income is dependent on the taxpayer’s filing status.
Excludable amounts of gain are as follows:
Married Filing Jointly $500,000
Married Filing Separately $250,000
Head of Household $250,000
Qualifying Widow(er) $500,000
(sale within 2 years from death of spouse)