When you sell your primary residence, you may be able to save thousands of dollars by taking advantage of one of the best available tax breaks. Provided that you have lived in the home as your primary residence and owned it for at least two of the past five years, when you sell your home, you can exclude from income up to $250,000 of gain ($500,000 for married couples filing jointly). This tax benefit can be used once every two years.
Did you know that a married couple can qualify for the entire $500,000 exclusion even if only one spouse has owned the property for two years? Or that you don’t need to own the home and use it as your primary residence the same two years? Read on for a few pointers that may help you take advantage of this tax benefit when you sell your house of primary residence.
Pointer One – $500,000 Exclusion For Married Couples Available Even If Only One Spouse Owns Home For Two Years
If you are married and you and your spouse file a joint return, you can exclude up to $500,000 of gain under this rule, pr