Good Afternoon BP!
I need some help. I am drawing a blank on the name/category of tax break individuals can receive after selling a home for a gain as long as it is their primary residence for 2 of the last 5 years at the time of sale. Whatever gain you make on the selling of the property will be tax exempt up to $250K individually, $500K if filing taxes jointly. I have read it on here before but am having a hard time locating the information again. Thanks for your help!
@Josh Wallace I think the term you are looking for is Capitol Gains Tax.
@Tyler Gibson Yes but there is a specific code or category that allows you to avoid paying the capitol gains tax. I have heard @Mindy Jensen speak of it before on podcasts along with others. If you do a live-in flip but live there for a minimum of two years before selling, you avoid capital gains tax up to $250K if filing single or $500K if filing jointly. I am curious what that tax code/category/program is actually called in order to do more research.
@Josh Wallace it is the home sales exclusion Section 121 exclusion. https://www.irs.gov/taxtopics/tc701
@Tyler Gibson Thank you very much!