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1.
In order to qualify for the entire capital gain exclusion allowed on a home that you sell, you must have lived in it for a total of how many years?
2. This figure is an aggregate total.
2.
If you are an individual, how much of the capital gain can you exclude from taxes when you sell your home?
Up to $250,000. The law allows up to $250,000 to be excluded.
3.
If you do not meet the use test for exclusion of capital gains on your home, can you receive a partial exclusion under any circumstances?
Yes. You can receive a partial exclusion if you sell the house because of a change in employment, health, or other special circumstances, even if you do not meet the use test. For these circumstances, you can receive a portion of the exclusion based on the time of the two- year period you did live in the house.
4.
The cost basis of your home includes more than just the price you paid for it.
True. The cost basis includes many expenses beyond just the price you paid for it.
5.
How much of a loss on your home can you deduct on your tax return?
None of it. Unlike with other investments, you cannot deduct a loss on the sale of your home.