It depends on how long you owned and lived in the home before the sale and how much profit you made. If you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free. If you are married and file a joint return, the tax-free amount doubles to $500,000. If your profit exceeds the $250,000 or $500,000 limit, the excess is reported as a capital gain on Schedule D.

Question

Do I have to pay taxes on the profit?

Forum|Forum|5 years ago
February 2, 2021
1 reply
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of my home ?

TurboTax Deluxe Online

M

MayaD

It depends on how long you owned and lived in the home before the sale and how much profit you made.

If you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free.
If you are married and file a joint return, the tax-free amount doubles to $500,000. If your profit exceeds the $250,000 or $500,000 limit, the excess is reported as a capital gain on Schedule D.

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