Article: 50278
Overview
If a primary residence is sold at a gain, up to $250,000 of the capital gain may be excluded from taxable income ($500,000 if filing a joint return), pursuant to the Section 121 exclusion.
To qualify for this exclusion, the taxpayer must satisfy both the ownership and use requirements. Specifically, the home must have been owned and used as a primary residence for a total of at least two years during the five-year period preceding the date of sale. The ownership and use periods need not be concurrent, but both must occur within the designated five-year time frame.
Generally, the exclusion is not available if it was claimed for the sale of another residence within the prior two years.
Add the §121 Exclusion
To add the §121 Exclusion:
- Go to Federal Taxes.
- Click Review.
- Click I’d like to see the forms I’ve filled out or search for a form.
- Enter First-Time Homebuyer Credit Repayment and Sale of Primary Home in the search box and select it to add and open the form.
- Select the “You may qualify for exclusion of part or all of the gain from the sale of your home” link and enter your information and click Save.
Further Information
See the following for more information: