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Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
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Experience:  3+ decades of varied tax industry exp. Tax Biz owner
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I am 79 yeaars old. I just sold my home which I lived in

Customer Question

I am 79 yeaars old. I just sold my home which I lived in for 39 years. It sold for $275,000 and I received, after real estate fee, closing costs, etc. $254,000. Do I have to pay any federal taxes on any of that money?
Submitted: 1 year ago.
Category: Tax
Expert:  Tax.appeal.168 replied 1 year ago.

First you must determine if you incurred a gain or a loss on the sale. As you meet the ownership and residence qualifications, if you are a single tax filer, you qualify for the $250,000 maximum exclusion on the sale. If you are married, file jointly and both you and your meet the qualifications, you can exclude $500,000. It is likely that you will NOT have to pay any tax. For more information on the sale of your home and the exclusion, you can refer to IRS Pub 523. Even if you incur a loss on the sale, you will still need to report the sale on the Schedule D and the Form 8949.

Link to Pub 523:

https://www.irs.gov/pub/irs-pdf/p523.pdf

Let me know if I can be of further assistance to you regarding this matter.