How property taxes are determined by Magnet Properties

Sale of Primary Residence

Primary residence defined

Owned and occupied at least 2 years of 5 years prior to sale

What is your home's value?

Adjusted basis is used to compute gain or loss

Keeping Records

Tax Implications

Up to $250,000 (single)/$500,000 (married filing jointly) gain may be excluded from income every 2 years for the sale of a primary residence

Can be done every 2 years

If part of the home is used as business and depreciated it may not be eligible for exclusion

Publication 523, “Selling Your Home”

http://www.irs.gov/pub/irs-pdf/p523.pdf

[Gain Calculation Worksheet]