701 Apr 2026

: If your profit exceeds the exclusion limits, you can often reduce your taxable gain by adding the cost of major home improvements (like a new roof or kitchen remodel) to your "cost basis".

: You must have lived in the home as your main residence for at least 24 months . : If your profit exceeds the exclusion limits,

AI responses may include mistakes. For financial advice, consult a professional. Learn more Topic no. 701, Sale of your home | Internal Revenue Service For financial advice, consult a professional

: If your spouse passed away, you may still qualify for the full $500,000 exclusion if the sale occurs within two years of their death and other criteria are met. : If you used part of your home

: If you used part of your home for business or rented it out, special rules apply that might limit your exclusion.

: You generally cannot have used the exclusion for another home sale in the two years prior to the current sale. Important "Gotchas" and Nuances