Primary Home Basis Tracker
Internal revenue code 121 allows a taxpayer to sell their primary home and exclude up to $250k if single, or $500k if married, of Gain tax -free.
It is required that you both own and occupy the home for 2 of the most recent 5 years to qualify.
Tracking your basis in your primary home is important because in the current market it's possible for your Gain to exceed those amounts. Any renovations/improvements done to your primary home increase your basis in the home. The higher your basis, the lower your Gain. As the Gain is calculated by Sale price- selling costs- basis in the home.
Internal revenue code 121 allows a taxpayer to sell their primary home and exclude up to $250k if single, or $500k if married, of Gain tax -free.
It is required that you both own and occupy the home for 2 of the most recent 5 years to qualify.
Tracking your basis in your primary home is important because in the current market it's possible for your Gain to exceed those amounts. Any renovations/improvements done to your primary home increase your basis in the home. The higher your basis, the lower your Gain. As the Gain is calculated by Sale price- selling costs- basis in the home.
Internal revenue code 121 allows a taxpayer to sell their primary home and exclude up to $250k if single, or $500k if married, of Gain tax -free.
It is required that you both own and occupy the home for 2 of the most recent 5 years to qualify.
Tracking your basis in your primary home is important because in the current market it's possible for your Gain to exceed those amounts. Any renovations/improvements done to your primary home increase your basis in the home. The higher your basis, the lower your Gain. As the Gain is calculated by Sale price- selling costs- basis in the home.