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

Important Terms

Once you have determined that a taxpayer is eligible for the exclusion, to figure the gain or loss on the sale of a taxpayer's main home, you must know the following about the home:

  • Selling price
  • Amount realized
  • Basis
  • Adjusted basis
More Information

Recall that taxpayers who have a gain from the sale of their main home may exclude up to $250,000 of the gain from their taxable income ($500,000 if Married Filing Jointly), if all conditions are met.