4 ms·
Do I have to pay taxes on the profit I made selling my home? It depends on how long you owned and lived in the home before the sale and how much profit you mad
by pragmatic 9y ago
Do I have to pay taxes on the profit I made selling my home?
It depends on how long you owned and lived in the home before the sale and how much profit you made. If you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free.
If you are married and file a joint return, the tax-free amount doubles to $500,000. The law lets you "exclude" this much otherwise taxable profit from your taxable income. (If you sold for a loss, though, you can't take a deduction for that loss.)
- DrScump 9y agoup to $250,000 of profit is tax-free You get that exemption once in a lifetime. (If you are married filing together, that's once for both parties.) If your profit isn't 6 figures, choose this option carefully.
- meritt 9y agoUnder current law, you can take the exclusion every two years: https://www.irs.gov/publications/p523#en_US_2017_publink10008998 https://www.irs.gov/publications/p523#en_US_2017_publink1000... Are you referring to the over-55-once-in-a-lifetime exemption that was replaced in 1997 with the introduction of the Taxpayer Relief Act? https://en.wikipedia.org/wiki/Taxpayer_Relief_Act_of_1997 https://en.wikipedia.org/wiki/Taxpayer_Relief_Act_of_1997
- sulam 9y agoThis is incorrect.