701 Apr 2026

: You must have owned the home for at least 24 months (two years).

To qualify for this exclusion, you generally must meet two main tests within the ending on the date of the sale:

: Can exclude up to $500,000 of capital gains. : You must have owned the home for

This is a complete exclusion, meaning you don't even have to reinvest the money into a new house to keep the profit tax-free. Core Requirements for the Benefit

: You must have lived in the home as your main residence for at least 24 months . Core Requirements for the Benefit : You must

The centerpiece of Topic 701 is the , which allows homeowners to sell their primary residence and exclude a massive portion of their profit from federal income tax: Single Filers : Can exclude up to $250,000 of capital gains.

For deeper details, the IRS provides Publication 523, Selling Your Home, which includes worksheets to help calculate your specific gain or loss. : You generally cannot have used the exclusion

: You generally cannot have used the exclusion for another home sale in the two years prior to the current sale. Important "Gotchas" and Nuances