Seller's Tax Question
Good day everyone!
I am currently in negotiations with a seller. He asked a tax question that I am not sure how to answer. He asked how much taxes will he have to pay when he sells his house. He has lived in the residence for the past five years, but had the deed in his name for only a year. He is in the 12% tax bracket. I am reading from tax sites (not the IRS) that he may not have to pay capital gains on some assets because he is within the 10% - 15% tax bracket, but does not specify if a home falls in to this category. The IRS website does not seem to specify what rules apply in this situation. Does anyone know if his house would fall in to this category?