Home Sale Exclusion

You can exclude up to $250,000 (up to $500,000 if Married Filing Jointly) if you meet all the following conditions:

• Ownership Requirement: You owned the home for at least two out of the last five years prior to the date of sale.
• Residence Requirement: You owned and used the home as your main residence for at least two out of the last five years prior to the date of sale. These two years don't have to be the same as the two years for the ownership test.
• Look-Back Requirement: You didn't exclude gain from the sale of another home in the two years prior to the sale of this home.

All the below additional requirements must be met in order to receive the $500,000 exclusion for married couples:

• You and your spouse are married and file a joint return for 2025.
• Either you or your spouse meet the ownership requirement.
• Both you and your spouse meet the residence requirement.
• Both you and your spouse meet the look-back requirement.