With tax season upon us, a recent home sale can have an effect on your tax return. Read on to learn more about capital gains if you’ve sold your home in Chevy Chase.
What Tax Exclusions Can I Get If I Sold My Chevy Chase Home?
You could exclude up to $250,000 of gain from selling your primary residence (or $500,000 if you’re married) from your federal tax return. In order to qualify for this exclusion:
- The home must have been treated as your main residence for at least two of the five years before its sale.
- You can’t exclude gain on another home you’ve sold during the two years before the most recent sale.
- If you’re able to exclude all the gain from your sale, you’re not required to report it on your federal tax return. If you aren’t able to exclude all the gain, you should use a Schedule D of Form 1040 to claim the exclusion you qualify for.
Are There Exceptions If I Don’t Qualify?
You can still use a reduced maximum exclusion amount if you had to sell your Chevy Chase home because of health reasons, employment-related moves or unforeseen circumstances.
Can I Exclude Gain From More Than One Home?
If you happen to own more than one residential property, you are able to exclude the gain from the sale of your primary residence only. If you happen to live in more than one home, your primary residence can be considered the one you spend the most time in.
Do You Plan On Selling Your Chevy Chase Home? We Can Help!
As a Member of the Top 5 in Real Estate Network®, I have a wealth of real estate and homeownership information that may be of help to you. Feel free to contact me any time to learn more about this home selling advice and benefits.
Long and Foster Realtors