Maybe you’re one of the lucky ones that actually still has some equity in their home. Maybe you’re even luckier that you found somebody to buy your home in the middle of our housing crisis. Now the question remains is how much tax you’ll have to pay on the sale. What, tax on a home sale? Well, that depends. Currently, the IRS allows for an exclusion of up to $250,000 for an individual filer and $500,000 for a couple filing married, filing joint, — to any taxpayer who satisfies certain tests known as the Ownership Test and the Use Test.
Do You Pass The Test?
Don’t worry. This isn’t a test that requires a No. 2 pencil and a Scantron. The tests are just certain guidelines that you have to pass. […]
