Home Sale Exclusion Can Shield $250,000 From Tax | fyp

US sellers qualify without realizing it: live in a primary residence for 2 of the past 5 yr, exclude up to $250K, $500K jointly.
Two tests matter: own your home for 2 of 5 yr and live there 2 of 5 yr; those periods need not be consecutive or overlap.
For full $500K, both spouses need residency, though only 1 needs ownership; use the exclusion every 2 yr. Second homes and rentals don't qualify.
Taxable gain starts with sale price, then selling costs and cost basis. Capital improvements raise basis; routine repairs and repainting do not count.
Before listing, gather closing papers and receipts. Waiting a few months for the 2-yr mark can save substantial tax; some early sales still qualify partially.