How to Use the Home Sale Tax Exemption Checker
Under Section 121 of the tax code, you can exclude a portion of your gain from federal capital gains tax when you sell your primary residence, as long as you meet the ownership and use test. You must have owned and lived in the home for at least 2 of the last 5 years, and you generally can't have used this exclusion on another home sale within the last 2 years.
This checker asks for your ownership months, residency months, and whether you've used the exclusion recently, then tells you whether you qualify. If you do, it applies the correct exclusion limit for your filing status — $250,000 for single filers or $500,000 for married couples filing jointly — and shows any gain above that limit that would still be taxable.
This is a simplified eligibility check for planning purposes; consult a tax professional for a sale involving unusual circumstances like a partial-year rental or a home office.
Frequently Asked Questions
You must have owned and lived in the home as your primary residence for at least 2 of the last 5 years (24 of the last 60 months), and you must not have used this exclusion for another home sale in the last 2 years.
If you qualify, single filers can exclude up to $250,000 of gain, and married couples filing jointly can exclude up to $500,000. Any gain above that limit is subject to capital gains tax.