Ownership and use requirement
During the 5 years before you sell your home, you must have at least:
- 2 years of ownership and
- 2 years of use as a primary residence
Ownership and use can occur at different times.
Individuals
You do not have to report the sale of your home if all of the following apply:
- Your gain from the sale was less than $250,000
- You have not used the exclusion in the last 2 years
- You owned and occupied the home for at least 2 years
Any gain over $250,000 is taxable.
Married/Registered domestic partner (RDP)
Married/RDP couples can exclude up to $500,000 if all of the following apply:
- Your gain from the sale was less than $500,000
- You filed a joint return for the year of sale or exchange
- Either spouse/RDP meets the 2-out-of-5-year ownership requirement
- Both spouses/RDPs meet the 2-out-of-5-year use requirement
- Neither you nor your spouse/RDP excluded gain from the sale of another home in the last 2 years
Any gain over $500,000 is taxable.
