Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income — Capital Gain or Loss

Gain on Sale of Main Home

Selling Price

The selling price is the total amount the taxpayer (seller) received for his or her main home. It includes money, all notes, mortgages, or other debts taken over by the buyer as part of the sale, and the fair market value of any other property or services that the seller received.

More Information

Refer a taxpayer who used his or her main home for business to a paid professional tax preparer. Rental property is considered business use of a home and the taxpayer should be referred to a professional tax preparer.

Caution

A loss on the sale of a taxpayer’s main home is not deductible.

Check made out to Franklin T. Cooper for $250,000. The memo line reads, "For purchase of home."