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Hello, Your sale qualifies for exclusion of $250,000 gain ($500,000 if married filing jointly) if the following is true:
You owned the home and used it as your main home during at least 2 of the last 5 years before the date of sale.
You did not acquire the home through a like-kind exchange (also known as a 1031 exchange), during the past 5 years.
You did not claim any exclusion for the sale of a home that occurred during a 2-year period ending on the date of the sale of the home, the gain from which you now want to exclude.So as long is the capital gain is less than $250,000 (if single) or $500,000 (if married) then no tax would need to be paid. You do however need to report the sale to the IRS on your tax form.Does that fully answer your question?
Hello, just wanted to follow up to see if you had any additional questions? Thank you.