701 May 2026

: If your spouse passed away, you may still qualify for the full $500,000 exclusion if the sale occurs within two years of their death and other criteria are met.

This is a complete exclusion, meaning you don't even have to reinvest the money into a new house to keep the profit tax-free. Core Requirements for the Benefit

: If you used part of your home for business or rented it out, special rules apply that might limit your exclusion. : If your spouse passed away, you may

: You must have owned the home for at least 24 months (two years).

: Unlike other investments, you cannot deduct a loss from the sale of your personal residence on your taxes. : You must have owned the home for

: Can exclude up to $500,000 of capital gains.

The centerpiece of Topic 701 is the , which allows homeowners to sell their primary residence and exclude a massive portion of their profit from federal income tax: Single Filers : Can exclude up to $250,000 of capital gains. The centerpiece of Topic 701 is the ,

: You must have lived in the home as your main residence for at least 24 months .