Sale of Primary Residence/Home
If you have sold your home and have lived in that home for at least 2 of the past 5 years, you are eligible for a capital gain exclusion.
If you are a single filer, then you will receive a 250K capital gain exclusion.
If you are married filing jointly, then you will receive a 500K capital gain exclusion.
At tax time, you will need to provide the following information:
* The date you originally purchased the home
* The price you originally paid for the home
* You should also provide the 1099-S document (you received this at the closing when you sold the home). This form will include the date the home was sold and the price that the home was sold for.
In addition, you will need to include a breakdown of all major expenses which will reduce the capital gain if you are over the exclusion threshold.