Basics Intermediate: Tax Deductions for Selling Your Home

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1.
If you are an individual, how much of the capital gain can you exclude from taxes when you sell your home?
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Up to $250,000. The law allows up to $250,000 to be excluded.
2.
The cost basis of your home includes more than just the price you paid for it.
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True. The cost basis includes many expenses beyond just the price you paid for it.
3.
To determine how much you have gained or lost on your home when you sell it, you must subtract the _______ from the home's selling price.
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Cost basis. The cost basis is the true cost of the home. It includes the purchase price plus improvements and various expenses and depreciation.
4.
Unmarried people who jointly own a home do not qualify for the capital gain exclusion when they sell the home.
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False. Providing they each meet the "use" test, unmarried people who jointly own a home DO qualify for the exclusion.
5.
If you live in your home for less time than two years before selling it, you can still qualify for some tax relief on any capital gains you make on the home.
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True. In certain circumstances, you can qualify.