Sale of Primary Home

Single filers can exclude from their income up to $250,000 and married couples up $500,000 of gains from the sale of the primary home meeting the time-test. The seller(s) must have lived in the house 2 years out of 5 years prior to the sale. The 2 years does not have to be consecutive. There are other rules and exceptions apply. Please see the IRS Tax Tip.