Thumbs Up: Seller's Exemption

Physician's Money Digest, March31 2004, Volume 11, Issue 6

The catch:

The solution:

If you're single and you sell yourhome, you can avoid paying anytaxes on the first $250,000 of the profityou make on the sale. Married couplesare exempt from any tax on thefirst $500,000 of profit. Thehouse must have been your principalresidence for at least 2 of the 5 yearspreceding the sale. If you own morethan one home and don't spend 183days a year living in one of them, youmay not be able to designate any ofthem as a principal residence. Spend at least 183 days of theyear in one of the homes and use itsaddress for items like your tax returns,driver's license, and car registration.