701 Apr 2026

: You must have owned the home for at least 24 months (two years).

: You generally cannot have used the exclusion for another home sale in the two years prior to the current sale. Important "Gotchas" and Nuances : You must have owned the home for

For deeper details, the IRS provides Publication 523, Selling Your Home, which includes worksheets to help calculate your specific gain or loss. : If your spouse passed away, you may

: If your spouse passed away, you may still qualify for the full $500,000 exclusion if the sale occurs within two years of their death and other criteria are met. : If your spouse passed away

To qualify for this exclusion, you generally must meet two main tests within the ending on the date of the sale:

: If your profit exceeds the exclusion limits, you can often reduce your taxable gain by adding the cost of major home improvements (like a new roof or kitchen remodel) to your "cost basis".

: You must have lived in the home as your main residence for at least 24 months .