: Can exclude up to $500,000 of capital gains.
For deeper details, the IRS provides Publication 523, Selling Your Home, which includes worksheets to help calculate your specific gain or loss. : Can exclude up to $500,000 of capital gains
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. : Can exclude up to $500
: Unlike other investments, you cannot deduct a loss from the sale of your personal residence on your taxes. the IRS provides Publication 523
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