The sale of your Main Home is recorded by following this path:
- Federal Section
- Capital Gains and Losses
- Sale of Main Home Worksheet
Do I qualify to exclude the gain?
You may qualify to take the Maximum Exclusion if you have owned and used the home as your main home for a total of two years out of the five years prior to the date of sale. If you excluded the gain from the sale of another home in the two years prior to the sale of this home, you are not eligible to claim the exclusion.
You may still qualify to exclude a reduced amount if you do not qualify for the maximum exclusion. Generally, you would qualify for the Reduced Maximum Exclusion if the primary reason was:
- Because you changed your place of employment,
- Because of health issues, OR
- Because of unforeseen circumstances.
Can I take a loss if the home sold for less that what I paid?
The IRS does not allow for a loss on personal property such as a home.