Federal Tax Rules Regarding the Sale of Your Home

Curious about the federal tax rules regarding the sale of your home, how the gain on that sale is taxed, and how to determine if the gain from your sale qualifies to be excluded from your taxable income?

Last year’s IRS bulletin “Selling Your Home” for use in preparing your 2010 tax return includes a worksheet for calculating your home’s cost basis, used in determining the size of your gain on the sale of your home. It also describes the criteria used to qualify your home sale for exclusion from your taxable income.

Please follow this link to the IRS publication 523 “Selling Your Home” posted on the IRS site

http://www.irs.gov/pub/irs-pdf/p523.pdf