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

Income — Capital Gain or Loss

Sale of Main Home

Exclusion Amount

Taxpayers who sold their main home may be able to exclude gain up to a maximum of $250,000 ($500,0000, for married taxpayers who file a joint return).

Generally, if the taxpayer can exclude all of the gain, it is not necessary to report the sale. If any of the gain cannot be excluded, it is taxable and reported on the return.

A loss on the sale cannot be deducted; however, the taxpayer may be required to report it.