The IRS has recently issued a helpful list of 10 tax tips all homeowners should keep in mind when selling a home: 1. You are usually eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale. 2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases). 3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home. 4. If you can exclude all of the gain, you do not need to report the sale on your tax return. 5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses. 6. You cannot deduct a loss from the sale of your main home. 7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the a...
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