How are the proceeds from the sale of a home taxed?

Answer by  Att4372 (1704)

Proceeds from the sale of your personal home are not taxed. If your proceeds are above $500,000, you report the sale and subtract your basis (original cost plus improvements). If the gain is more than $500,000, and you don't replace your home, you pay tax on any gain above $500,000.

Answer by  Kurt (4579)

Basically the proceeds are reduced by the cost of the home being sold. This is a long term capital gain but is also offset if you purchase a new home.

Answer by  gleverance (720)

It depends on the home. If it has been your primary home for a certain period, then an amount of the sale is exempt from taxes. If its a second home, it may be taxed as regular income. You're best best is to sit down with an accountant.