Here are some things the IRS suggests you keep in mind when selling a home. As always, for advice on tax planning and compliance, check with your accountant and/or the Internal Revenue Service for guidance before taking any action.
1. Taxpayers who sell a home may qualify to exclude from their income all or part of any gain from the sale. To claim the income tax exclusion, the homeowner must have owned the home for at least two years, and lived in the home as their main home for at least two years, during a five-year period ending on the date of the sale.