I have a question about capital gains tax on real estate. Regarding the capital gains tax on property, do I need to report the profit I made on the sale of a home I owned for 15 years?
Regarding capital gains tax on real estate, report the sale of your main home only if you have a gain not excluded from your income. If you have a gain that’s not excluded, you usually must report capital gains tax on property on Schedule D: Capital Gains and Losses.
You can exclude up to $250,000 of the capital gains tax on property if all of these apply:
- You own the home solely or you own the home with another person but file separate returns.
- You meet the ownership test. You owned the home for at least two of the last five years ending on the date you sold the home.
- You meet the use test. You occupied the home as your main home for at least two of the last five years ending on the date you sold the home.
- During the two-year period ending on the date of the sale, you didn’t exclude gain from the sale of another home.
You can exclude up to $500,000 of the gain if all of these apply:
- You’re married filing jointly.
- Either you or your spouse meets the ownership test.
- Both you and your spouse meet the use test.
- During the two-year period ending on the date of the sale, you or your spouse didn’t exclude gain from the sale of another home.
Related Resources
Do capital gains apply to garage sale money? The answer depends on a number of factors. Learn more at H&R Block.
Professional golfer taxes can be complicated and confusing. Learn more about tricky golfer tax issues like travel deductions and residency rules with H&R Block.
Thinking about renting out a room in your home? Learn more about the potential tax implications with the experts at H&R Block.
Finding your taxable income is an important part of filing taxes. Learn how to calculate your taxable income with help from the experts at H&R Block.