701

: You generally cannot have used the exclusion for another home sale in the two years prior to the current sale. Important "Gotchas" and Nuances

The centerpiece of Topic 701 is the , which allows homeowners to sell their primary residence and exclude a massive portion of their profit from federal income tax: Single Filers : Can exclude up to $250,000 of capital gains.

: If you used part of your home for business or rented it out, special rules apply that might limit your exclusion. : You generally cannot have used the exclusion

: You must have lived in the home as your main residence for at least 24 months .

For deeper details, the IRS provides Publication 523, Selling Your Home, which includes worksheets to help calculate your specific gain or loss. : You must have lived in the home

: Can exclude up to $500,000 of capital gains.

This is a complete exclusion, meaning you don't even have to reinvest the money into a new house to keep the profit tax-free. Core Requirements for the Benefit This is a complete exclusion, meaning you don't

To qualify for this exclusion, you generally must meet two main tests within the ending on the date of the sale: