Sale of Home Organizer

Important Sale of Home Information

IRS rules allow you to exclude up to $250,000 ($500,000 if married) of gain from the sale of your main home if you owned and occupied the home for at least two of the last five years.  In most cases you do not need to report the sale of your home if your gain is less than $250,000 (or $500,000 if married) and you owned and occupied your home for at least two of the last five years. (The higher $500,000 exclusion amount for married filers applies only if both you and your spouse owned and occupied your home for two of the past five years.)

If you did not own and occupy your home for two of the past five years the gain you made from the sale of your home is generally taxable.  Certain exceptions can apply so be sure to explain your reasons for selling in less than the the allowed time frame to your tax preparer.  Also, you may still need to report the sale of your home if you used your home for business or rental purposes.

If you received IRS Form 1099S reporting proceeds from the sale of your home, you will need to report the sale of your home on your tax return.  You will also need to report the sale of your home if you did not own and occupy your home for two of the past five years.

Good Faith Estimate - Closing Papers

Closing papers show important information relating to the sale of your home.  If you purchased or sold your home during the year, please bring copies of Good Faith Estimates from:

• The purchase of your home
• The sale of your home, and
• From all refinances you made on the home during the time you owned it.

 

Click here for an illustration of what your Good Faith Estimate closing papers might look like.

Click here to download our Sale of Home Organizer (PDF)

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