701 🔖 🆕

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

: If your spouse passed away, you may still qualify for the full $500,000 exclusion if the sale occurs within two years of their death and other criteria are met.

To qualify for this exclusion, you generally must meet two main tests within the ending on the date of the sale: This is a complete exclusion, meaning you don't

AI responses may include mistakes. For financial advice, consult a professional. Learn more Topic no. 701, Sale of your home | Internal Revenue Service

: Can exclude up to $500,000 of capital gains. For financial advice, consult a professional

: If your profit exceeds the exclusion limits, you can often reduce your taxable gain by adding the cost of major home improvements (like a new roof or kitchen remodel) to your "cost basis".

: You must have owned the home for at least 24 months (two years). : If your profit exceeds the exclusion limits,

For deeper details, the IRS provides Publication 523, Selling Your Home, which includes worksheets to help calculate your specific gain or loss.