Does Selling Your Home Count As Income, and how does it affect your taxes? Understanding the tax implications of selling your home is crucial for financial planning and maximizing potential income, which is where income-partners.net comes in as a valuable resource. We’ll break down everything you need to know, from exclusions and reporting to potential exceptions. Boost your financial acumen with our insights into real estate transactions, capital gains, and tax strategies designed to optimize your returns.
1. What Constitutes Income When Selling a Home?
When determining if selling your home counts as income, the primary factor is whether you realized a capital gain. If you sell your home for more than you initially paid for it, the profit is considered a capital gain. However, the IRS provides specific exclusions that may allow you to avoid paying taxes on this gain.
Several factors determine whether the sale of your home is considered income. Key aspects to consider include:
- Capital Gains: This is the profit you make from selling your home for more than its original purchase price, plus any improvements made over time. Capital gains are generally considered income, but there are exclusions.
- Ownership and Use Tests: To qualify for certain tax exclusions, you must meet specific ownership and use requirements. Typically, you must have owned and lived in the home as your primary residence for at least two out of the five years leading up to the sale.
- Exclusion Limits: The IRS allows homeowners to exclude a certain amount of capital gains from their income. For single filers, this exclusion is up to $250,000, while married couples filing jointly can exclude up to $500,000.
- Reporting Requirements: Even if you meet the criteria to exclude the entire gain from your income, you may still need to report the sale to the IRS, especially if you received Form 1099-S.
By understanding these elements, you can better navigate the tax implications of selling your home and ensure compliance with IRS regulations.
2. How Do Capital Gains Work When Selling Property?
Capital gains are the profit you realize when you sell an asset, such as a home, for more than its original cost. Understanding how capital gains work is essential for managing the tax implications of selling property.
Here’s a detailed breakdown:
- Calculating Capital Gains: To calculate the capital gain, subtract your home’s adjusted basis from the selling price. The adjusted basis includes the original purchase price, plus the cost of any capital improvements you made during your ownership (e.g., renovations, additions).
- Capital Improvements: These are improvements that add value to your home, extend its life, or adapt it to new uses. Examples include adding a new room, installing new plumbing, or upgrading the electrical system. Keep detailed records of these expenses, as they can reduce your capital gains tax liability.
- Capital Losses: If you sell your home for less than its adjusted basis, you incur a capital loss. Unfortunately, you cannot deduct a loss on the sale of your main home.
- Tax Rates: Capital gains are taxed at different rates depending on your income and how long you owned the property. Short-term capital gains (for assets held for one year or less) are taxed at your ordinary income tax rate, while long-term capital gains (for assets held for more than one year) are taxed at lower rates.
- Depreciation Recapture: If you used part of your home for business purposes (e.g., a home office), you may have claimed depreciation deductions over the years. When you sell the home, you may need to recapture some of those deductions, which are taxed at your ordinary income tax rate.
Understanding these factors can help you accurately calculate your capital gains and plan for any potential tax liabilities. For more detailed guidance and resources, explore income-partners.net to optimize your financial strategies.
3. What Are the Ownership and Use Tests for Tax Exclusion?
To qualify for the capital gains exclusion when selling your home, you must meet the ownership and use tests set by the IRS. These tests ensure that the exclusion is applied to individuals who have genuinely used the property as their primary residence.
Here’s what you need to know:
- Ownership Test: You must have owned the home for at least two years (730 days) during the five-year period ending on the date of the sale. The two years do not have to be continuous.
- Use Test: You must have lived in the home as your primary residence for at least two years (730 days) during the same five-year period. Like the ownership test, the two years do not have to be continuous.
- Simultaneous Requirement: The ownership and use periods can occur at different times during the five-year period. You don’t have to own and live in the home simultaneously for two years.
- Short Temporary Absences: Short, temporary absences, such as vacations or seasonal absences, are counted as periods of use, even if you rent out the property during these times.
- Special Circumstances: There are exceptions to these rules for individuals with disabilities, members of the military, and certain government employees. These exceptions may allow for a reduced use test or a suspension of the five-year period.
Meeting these tests allows you to exclude up to $250,000 of capital gains if you’re single or $500,000 if you’re married filing jointly. Understanding these rules can significantly impact your tax liability when selling your home. For personalized guidance and resources, visit income-partners.net.
4. How Can You Calculate the Gain From Selling Your Home?
Calculating the gain from selling your home involves determining the difference between the selling price and the adjusted basis of your property. This calculation is essential for understanding the potential tax implications of the sale.
Here’s a step-by-step guide:
- Determine the Selling Price: This is the amount you receive from the sale of your home. It includes cash, notes, and any other property you receive in exchange.
- Calculate the Adjusted Basis: The adjusted basis is your original cost plus certain additions and minus certain deductions. It includes:
- Original Cost: The price you paid for the home.
- Capital Improvements: Costs of improvements that add value to your home, prolong its life, or adapt it to new uses (e.g., new roof, addition, upgraded plumbing).
- Selling Expenses: Costs you incurred to sell the home, such as real estate agent commissions, advertising fees, and legal fees.
- Depreciation: If you used part of your home for business purposes, you may have claimed depreciation deductions. These deductions reduce your basis.
- Subtract the Adjusted Basis from the Selling Price: The difference between the selling price and the adjusted basis is your gain. If the selling price is higher than the adjusted basis, you have a capital gain. If it’s lower, you have a capital loss (which is not deductible for a primary residence).
- Example Calculation:
- Selling Price: $500,000
- Original Cost: $300,000
- Capital Improvements: $50,000
- Selling Expenses: $20,000
- Adjusted Basis: $300,000 + $50,000 + $20,000 = $370,000
- Gain: $500,000 – $370,000 = $130,000
By accurately calculating your gain, you can better understand your tax obligations and explore strategies to minimize your tax liability. For more insights and resources, visit income-partners.net to help you navigate the complexities of real estate transactions.
5. What Are the Exclusion Limits for Capital Gains on Home Sales?
The IRS allows homeowners to exclude a certain amount of capital gains from the sale of their primary residence. These exclusion limits can significantly reduce your tax liability when selling your home.
Here are the key details:
- Single Filers: If you are single, you can exclude up to $250,000 of the gain from the sale of your home.
- Married Filing Jointly: If you are married and filing jointly, you can exclude up to $500,000 of the gain. This exclusion applies even if only one spouse meets the ownership and use tests.
- Multiple Homeowners: If more than one person owns the home (other than a married couple), each owner can exclude a portion of the gain equal to their ownership percentage, up to the individual limit of $250,000.
- Example Scenarios:
- A single individual sells their home for a $300,000 gain. They can exclude $250,000, and the remaining $50,000 is subject to capital gains tax.
- A married couple filing jointly sells their home for a $600,000 gain. They can exclude $500,000, and the remaining $100,000 is subject to capital gains tax.
- Claiming the Exclusion: To claim the exclusion, you must meet the ownership and use tests. If you meet these requirements and your gain is within the exclusion limits, you generally do not need to report the sale on your tax return unless you received Form 1099-S.
Understanding these exclusion limits is crucial for tax planning when selling your home. For more detailed information and strategies, visit income-partners.net to optimize your financial outcomes.
6. How Do You Report the Sale of Your Home to the IRS?
Reporting the sale of your home to the IRS depends on whether you qualify to exclude the entire gain from your income. Even if you meet the exclusion requirements, there are situations where you still need to report the sale.
Here’s a comprehensive guide:
- No Taxable Gain and No Form 1099-S: If you meet the ownership and use tests, exclude the entire gain, and did not receive Form 1099-S, you generally do not need to report the sale on your tax return.
- Taxable Gain or Form 1099-S Received: If you have a taxable gain (i.e., your gain exceeds the exclusion limits) or you received Form 1099-S, you must report the sale on your tax return.
- Form 1099-S: This form reports the proceeds from real estate transactions and is typically issued by the title company or real estate agent involved in the sale. Receiving this form means you must report the sale, even if you believe you have no taxable gain.
- How to Report:
- Schedule D (Form 1040), Capital Gains and Losses: Use this form to report the sale of your home. You’ll need to provide details such as the date you acquired the home, the date you sold it, the selling price, and your adjusted basis.
- Form 8949, Sales and Other Dispositions of Capital Assets: You may also need to complete this form, especially if you have multiple capital gains transactions to report.
- Filing Requirements: Include Schedule D and Form 8949 (if applicable) with your Form 1040 when you file your tax return. Ensure you keep accurate records of all relevant documents, such as purchase contracts, receipts for capital improvements, and Form 1099-S.
- Example Scenario: You sell your home and receive Form 1099-S, even though your gain is below the exclusion limit. You must still report the sale on Schedule D, indicating that you are excluding the gain.
Properly reporting the sale of your home ensures compliance with IRS regulations and can help you avoid potential penalties. For more guidance and resources, visit income-partners.net to navigate the complexities of real estate transactions.
7. What Happens if You Have a Loss on the Sale of Your Home?
If you sell your home for less than its adjusted basis, you experience a loss. Unfortunately, the tax implications for losses on the sale of a primary residence are not favorable for homeowners.
Here’s what you need to know:
- Non-Deductible Loss: According to IRS rules, you cannot deduct a loss on the sale of your main home. This means you cannot use the loss to offset other income or capital gains on your tax return.
- Primary Residence Requirement: The non-deductible loss rule applies specifically to the sale of your primary residence. If you sell a rental property or a vacation home, you may be able to deduct the loss, subject to certain limitations.
- Record Keeping: While you cannot deduct the loss, it’s still important to keep records of the sale, including the purchase price, selling price, and any expenses related to the sale. This documentation may be useful for future tax planning or in case of an IRS audit.
- Strategies to Consider:
- Tax Gain Harvesting: If you have other capital gains, you might consider selling assets that have decreased in value to offset those gains. This strategy can help reduce your overall tax liability, although it doesn’t directly impact the loss on your home sale.
- Long-Term Financial Planning: Understanding the non-deductible nature of the loss can inform your long-term financial decisions. Consider consulting with a financial advisor to explore strategies for managing your overall investment portfolio and tax liabilities.
While a loss on the sale of your home is not tax-deductible, being aware of this rule can help you make informed financial decisions. For more insights and resources, visit income-partners.net to help you navigate real estate transactions and tax planning.
8. How Does Selling Multiple Homes Affect Your Taxes?
If you own multiple homes, the tax implications of selling them can vary depending on which home you sell and whether it qualifies as your primary residence.
Here’s a breakdown of how selling multiple homes affects your taxes:
- Primary Residence: You can exclude up to $250,000 (single) or $500,000 (married filing jointly) of the gain from the sale of your primary residence, provided you meet the ownership and use tests. You can only have one primary residence at a time.
- Rental Properties: If you sell a rental property, the gain is generally treated as a capital gain. However, you may also need to recapture any depreciation deductions you claimed over the years. The recaptured depreciation is taxed at your ordinary income tax rate.
- Vacation Homes: If you sell a vacation home that you used personally, the gain is treated as a capital gain. You cannot exclude any of the gain unless the vacation home also qualifies as your primary residence at some point.
- Like-Kind Exchanges (1031 Exchanges): If you sell a rental property or a property used for business purposes, you may be able to defer the capital gains tax by using a 1031 exchange. This involves reinvesting the proceeds from the sale into a similar property within a specified time frame.
- Reporting Requirements: You must report the sale of any home on your tax return if you receive Form 1099-S or if you have a taxable gain. Use Schedule D (Form 1040) to report capital gains and losses.
- Example Scenario: You own a primary residence and a rental property. You sell both properties in the same year. You can exclude the gain from the sale of your primary residence (up to the exclusion limits) if you meet the ownership and use tests. The gain from the sale of the rental property is subject to capital gains tax, and you may also need to recapture depreciation.
Understanding these rules can help you plan your real estate transactions effectively and minimize your tax liability. For more detailed information and strategies, visit income-partners.net to optimize your financial outcomes.
9. What Are the Tax Implications of Forgiven Mortgage Debt?
Forgiven or canceled mortgage debt can have significant tax implications. Generally, the IRS treats forgiven debt as taxable income, but there are exceptions, particularly for debt discharged on a qualified principal residence.
Here’s what you need to know:
- Debt as Income: When a lender forgives or cancels your debt, the forgiven amount is generally considered taxable income. This is because the IRS views the forgiven debt as if you received cash and then paid it back to the lender.
- Form 1099-C: If a lender forgives $600 or more of your debt, they are required to issue Form 1099-C, Cancellation of Debt, to you and the IRS. This form reports the amount of debt that was canceled.
- Qualified Principal Residence Exclusion: Prior to January 1, 2026, homeowners could exclude debt discharged on a qualified principal residence from their income, provided the debt was used to buy, build, or substantially improve the home. This exclusion has expired unless a written agreement for the debt forgiveness was in place before January 1, 2026.
- Insolvency Exception: Even if the qualified principal residence exclusion does not apply, you may be able to exclude the forgiven debt from your income if you were insolvent at the time the debt was canceled. Insolvency means that your total liabilities exceeded your total assets.
- Reporting Requirements: If you receive Form 1099-C, you must report the canceled debt on your tax return, even if you believe it is excludable. Use Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, to report any exclusion of canceled debt.
- Example Scenario: You had $50,000 of mortgage debt forgiven on your primary residence. If the debt was discharged before January 1, 2026, and met the requirements for the qualified principal residence exclusion, you could exclude the $50,000 from your income. If not, you would need to determine if you qualify for the insolvency exception or other exclusions.
Understanding the tax implications of forgiven mortgage debt is crucial for managing your tax obligations. For more detailed information and resources, visit income-partners.net to help you navigate these complex situations.
10. What Are the Exceptions to the Home Sale Tax Rules?
There are several exceptions to the standard home sale tax rules that can benefit certain individuals, including those with disabilities, military personnel, and Peace Corps workers. These exceptions often provide more favorable tax treatment or relax certain requirements.
Here are some key exceptions:
- Individuals with Disabilities: If you sell your home because of a disability, you may be able to exclude the gain even if you do not meet the two-year use test. The IRS may allow a shorter use period if you can demonstrate that the sale was due to your disability.
- Military Personnel and Certain Government Employees: Members of the military, foreign service, and intelligence community who are required to live away from their primary residence due to official duties may be able to suspend the five-year test period. This means they may still qualify for the exclusion even if they do not meet the two-year use test during the five years leading up to the sale.
- Peace Corps Workers: Peace Corps volunteers who serve outside the U.S. may also be able to suspend the five-year test period, allowing them to qualify for the exclusion even if they do not meet the two-year use test.
- Divorce or Separation: If you receive ownership of a home as part of a divorce settlement, you can include the time your spouse owned the home when determining if you meet the two-year ownership test. Additionally, if you transfer your interest in a home to your spouse or former spouse incident to a divorce, there is generally no gain or loss recognized.
- Unforeseen Circumstances: In certain cases, the IRS may grant a partial exclusion if you sell your home due to unforeseen circumstances, such as job loss, illness, or a natural disaster. This exception may allow you to exclude a portion of the gain, even if you do not meet the full two-year use test.
- Example Scenario: A military service member is stationed overseas for three years and then sells their home shortly after returning to the U.S. They may be able to suspend the five-year test period, allowing them to qualify for the exclusion even though they did not live in the home for two years during the five years leading up to the sale.
Understanding these exceptions can help you take advantage of more favorable tax rules when selling your home. For more detailed information and personalized guidance, visit income-partners.net to help you navigate these complex situations.
11. What Role Does Form 1099-S Play in Home Sales?
Form 1099-S, Proceeds from Real Estate Transactions, is an informational form used by the IRS to track real estate sales. It plays a crucial role in ensuring that taxpayers accurately report these transactions on their tax returns.
Here’s a detailed look at the role of Form 1099-S:
- Purpose of the Form: Form 1099-S reports the gross proceeds from the sale or exchange of real estate. It includes information about the seller, the buyer, the property, and the transaction.
- Who Issues the Form: The form is typically issued by the title company, escrow company, or real estate agent responsible for closing the transaction.
- Reporting Threshold: A Form 1099-S must be issued if the gross proceeds from the sale are $600 or more.
- Information Included: The form includes the following key information:
- Seller’s name, address, and taxpayer identification number (TIN).
- Buyer’s name and address.
- Property address or legal description.
- Gross proceeds from the sale.
- Closing date.
- Taxpayer Obligations: If you receive Form 1099-S, you must report the sale on your tax return, even if you believe you have no taxable gain. This is because the IRS receives a copy of the form and expects to see the transaction reported.
- Reporting Requirements: Use Schedule D (Form 1040) to report the sale of your home. You’ll need to provide details such as the date you acquired the home, the date you sold it, the selling price, and your adjusted basis.
- Example Scenario: You sell your home and receive Form 1099-S, even though your gain is below the exclusion limit. You must still report the sale on Schedule D, indicating that you are excluding the gain.
Understanding the role of Form 1099-S can help you ensure compliance with IRS regulations and avoid potential penalties. For more guidance and resources, visit income-partners.net to navigate the complexities of real estate transactions.
12. What Records Should You Keep When Selling a Home?
Keeping thorough records when selling a home is essential for accurately calculating your gain or loss and for supporting your tax return. Good record-keeping can also help you navigate potential audits or inquiries from the IRS.
Here’s a list of essential records to keep:
- Purchase Documents:
- Original purchase contract.
- Settlement statement or closing disclosure.
- Deed.
- Capital Improvement Records:
- Receipts for any capital improvements made to the home (e.g., new roof, addition, upgraded plumbing).
- Contracts with contractors.
- Detailed descriptions of the improvements.
- Selling Expense Records:
- Real estate agent commission statements.
- Advertising expenses.
- Legal fees.
- Escrow fees.
- Title insurance costs.
- Depreciation Records (If Applicable):
- Records of any depreciation deductions claimed if part of the home was used for business purposes.
- Form 4562, Depreciation and Amortization.
- Sale Documents:
- Sale contract.
- Settlement statement or closing disclosure.
- Form 1099-S, Proceeds from Real Estate Transactions.
- Loan Documents:
- Mortgage statements.
- Refinancing documents.
- Records of any forgiven mortgage debt.
- Other Relevant Documents:
- Appraisals.
- Home inspection reports.
- Insurance records.
Organize these records in a safe place and keep them for at least three years from the date you filed your tax return. In some cases, you may need to keep records for longer, such as if you amended your tax return or if the IRS is conducting an audit.
Maintaining thorough records can help you accurately report the sale of your home and support your tax filings. For more guidance and resources, visit income-partners.net to help you navigate the complexities of real estate transactions.
13. How Can Income-Partners.net Help You Navigate Home Sale Tax Implications?
Navigating the tax implications of selling a home can be complex, but income-partners.net offers a wealth of resources and expert guidance to help you make informed decisions and optimize your financial outcomes.
Here’s how income-partners.net can assist you:
- Comprehensive Information: Access detailed articles, guides, and resources covering all aspects of home sale tax implications, including capital gains, exclusion limits, reporting requirements, and exceptions.
- Expert Insights: Benefit from insights and advice from experienced financial professionals and tax experts who can help you understand complex tax rules and strategies.
- Tax Planning Tools: Utilize calculators and tools to estimate your capital gains, determine your tax liability, and explore strategies to minimize your taxes.
- Personalized Guidance: Connect with financial advisors and tax professionals who can provide personalized guidance tailored to your specific situation and goals.
- Up-to-Date Information: Stay informed about the latest tax laws, regulations, and changes that may impact your home sale.
- Community Support: Engage with a community of homeowners and investors who share their experiences and insights on home sale tax implications.
- Case Studies and Examples: Learn from real-world case studies and examples that illustrate how different tax rules apply in various situations.
By leveraging the resources available at income-partners.net, you can gain a clear understanding of the tax implications of selling your home and make informed decisions that can save you money and ensure compliance with IRS regulations.
Whether you are a first-time home seller or an experienced investor, income-partners.net is your go-to resource for navigating the complexities of home sale taxes. Visit us today to explore our comprehensive resources and connect with experts who can help you achieve your financial goals. Address: 1 University Station, Austin, TX 78712, United States. Phone: +1 (512) 471-3434. Website: income-partners.net.
14. How Do Home Improvements Affect Capital Gains Tax?
Home improvements can significantly impact your capital gains tax liability when you sell your home. Understanding which improvements qualify and how they affect your adjusted basis is crucial for accurate tax planning.
Here’s a detailed look at how home improvements affect capital gains tax:
- What Qualifies as a Home Improvement: Home improvements are expenses that add value to your home, prolong its life, or adapt it to new uses. These are different from repairs, which are expenses that maintain your home in good condition.
- Examples of Home Improvements:
- Adding a new room or garage.
- Installing a new roof.
- Upgrading the plumbing or electrical system.
- Adding central air conditioning or heating.
- Landscaping that adds value to the property.
- Installing new windows or doors.
- Impact on Adjusted Basis: The cost of home improvements increases your home’s adjusted basis, which is used to calculate your capital gain. By increasing your basis, you reduce the amount of profit that is subject to tax.
- Calculating Capital Gains with Home Improvements:
- Selling Price: $500,000
- Original Purchase Price: $300,000
- Home Improvements: $50,000
- Selling Expenses: $20,000
- Adjusted Basis: $300,000 (Original Price) + $50,000 (Improvements) + $20,000 (Expenses) = $370,000
- Capital Gain: $500,000 (Selling Price) – $370,000 (Adjusted Basis) = $130,000
- Record Keeping: Keep detailed records of all home improvement expenses, including receipts, contracts, and descriptions of the work performed. This documentation is essential for supporting your adjusted basis calculation.
- Non-Qualifying Expenses: Repairs, such as painting, fixing leaks, or replacing broken fixtures, are not considered home improvements and do not increase your adjusted basis.
Understanding how home improvements affect your capital gains tax can help you plan your renovations strategically and minimize your tax liability. For more insights and resources, visit income-partners.net to help you navigate the complexities of real estate transactions.
15. What Should You Do if You Receive an Audit Notice After Selling?
Receiving an audit notice from the IRS after selling your home can be stressful, but it’s important to remain calm and take the appropriate steps to respond effectively.
Here’s what you should do if you receive an audit notice:
- Review the Notice Carefully: Understand the reason for the audit and the specific items the IRS is questioning. The notice will typically explain what information the IRS needs and how to respond.
- Gather Your Records: Collect all relevant documents related to the sale of your home, including:
- Purchase and sale contracts.
- Settlement statements or closing disclosures.
- Receipts for capital improvements.
- Records of selling expenses.
- Form 1099-S.
- Any other documents that support your tax return.
- Organize Your Documents: Arrange your records in a clear and organized manner to make it easier for the IRS to review them. Create a summary or spreadsheet that explains your calculations and how you arrived at the figures on your tax return.
- Respond Promptly: Respond to the audit notice by the deadline specified. Failure to respond can result in penalties or an unfavorable outcome.
- Consider Professional Assistance: If you are unsure how to respond to the audit notice or if the issues are complex, consider seeking assistance from a tax professional or attorney. They can help you understand your rights, prepare a response, and represent you before the IRS.
- Communicate with the IRS: If you need more time to gather your records or if you have questions about the audit process, contact the IRS agent assigned to your case. Be polite and professional in your communications.
- Be Honest and Accurate: Provide accurate and truthful information to the IRS. Do not attempt to conceal or misrepresent any facts.
- Keep a Record of Your Communications: Keep a record of all communications with the IRS, including dates, names, and a summary of the conversation.
By taking these steps, you can effectively respond to an audit notice and work towards a resolution with the IRS. For more guidance and resources, visit income-partners.net to help you navigate the complexities of real estate transactions and tax compliance.
FAQ: Home Sale Tax Implications
1. Does selling your home count as income?
Yes, selling your home can count as income if you make a profit (capital gain). However, you may be able to exclude up to $250,000 of the gain if you’re single or $500,000 if you’re married filing jointly, provided you meet certain ownership and use tests.
2. What are the ownership and use tests?
To qualify for the capital gains exclusion, you must have owned and lived in the home as your primary residence for at least two years out of the five years before the sale.
3. How do I calculate the gain from selling my home?
To calculate the gain, subtract your home’s adjusted basis (original cost plus capital improvements) from the selling price.
4. What if I have a loss on the sale of my home?
Unfortunately, you cannot deduct a loss on the sale of your primary residence.
5. Do I need to report the sale of my home to the IRS?
You must report the sale if you receive Form 1099-S or if you have a taxable gain (i.e., your gain exceeds the exclusion limits).
6. What is Form 1099-S?
Form 1099-S, Proceeds from Real Estate Transactions, reports the gross proceeds from the sale of real estate and is typically issued by the title company or real estate agent.
7. How do home improvements affect capital gains tax?
Home improvements increase your home’s adjusted basis, which reduces the amount of profit subject to capital gains tax.
8. What if I have forgiven mortgage debt?
Forgiven mortgage debt is generally considered taxable income, but there are exceptions, such as the qualified principal residence exclusion (which expired unless a written agreement was in place before January 1, 2026) and the insolvency exception.
9. Are there any exceptions to the home sale tax rules?
Yes, there are exceptions for individuals with disabilities, military personnel, Peace Corps workers, and those who sell due to unforeseen circumstances.
10. What records should I keep when selling a home?
Keep records of the purchase, sale, capital improvements, selling expenses, and any other relevant documents to support your tax return.
Remember, navigating the tax implications of selling a home can be complex. For expert guidance and resources, visit income-partners.net to help you optimize your financial outcomes.
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