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What capital gains, transactions, state or federal incomes or other?

If you have only used the home as a personal residence you can exclude up to $250,000 of gain on the sale from tax ($500,000 exclusion if you are married and you and your spouse file a joint return). Neither the IRS nor PA tax gain on the sale of your primary residence as long as you meet the usage test (it was your primary residence for 2 of the last 5 years) and the total gain is under the exclusion limit above. You no longer have to purchase another home to qualify for the gain exclusion. If you have used the home for any business purposes where you might have depreciated a portion of the home such as rental or home office, then you may have to recapture some or all of the depreciation as income when you sell, but the capital gain is generally not taxable as long as you meet the qualifications for exclusion.

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