that's incorrect. Generally speaking you don't pay capital gains on the first $250k ($500k if filing jointly) under IRS rules. You can also adjust the cost basi

that's incorrect. Generally speaking you don't pay capital gains on the first $250k ($500k if filing jointly) under IRS rules. You can also adjust the cost basis of your home by adding in any improvements you may have made to the house, so assuming you made any improvements at all, you can potentially make that exemption even higher. See https://www.irs.gov/taxtopics/tc701 https://www.irs.gov/taxtopics/tc701.