Q: If I received approx. $52,000 from the sale of a house that I lived in for 8 years, do I have to claim it on my tax ret?
I read on the Internet that you do not have to claim the money if you live in the house for at least two years and that you don't have to pay capital gains taxes on as much as $250,000 for a single sale or up to $500,000 for a couple as long as the home was your primary residence and you lived there for more than 1-3 years. Is this true, and if not, how much tax would I have to pay? This is for the 2015 tax year.
A: Your question asks about capital gains. Generally speaking, under IRS rules, if you live in a home as your principal residence for 2 of the 5 years before you sold it, the first $250,000 of gain may be excluded from income. The IRS' website has a detailed publication on the topic of capital gains for sales of a residence and a CPA or tax preparer can help you with specific questions on your tax return.
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