If you sell your home, you may be able to exclude from income any gain (the amount of your profit) up to a limit of $250,000 ($500,000 on a joint return in most cases). To exclude the gain:
1. You must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date of sale.
2. You must not have, within the past 2 years, sold another home at a gain and excluded all or part of that gain.
If you cannot exclude gain, you must include it in income.
To determine the maximum dollar limit you can exclude and for additional information, refer to IRS Publication 523.
Unfortunately, you cannot deduct a loss on the sale of your home.
For any real estate need, please contact Chris Peterson at 979-680-9993 or www.BrazosLawyers.com.