If you sold your home, $250,000 can be excluded from federal income taxes. If filing a joint return, the amount is $500,000, in most cases. In order to take this type of deduction, you must have owned the home and used it as your main home for at least two years out of the five years prior to selling or exchanging it. If you do not quality for the exclusion, you may be able to exclude the gain if you sold or exchanged it due employment relocation, health or other unforeseen circumstances. You should be aware that once you take the exclusion, you can't ever claim it again, even if you don't claim the full amount. Additionally, there are new credits affecting the basis of a home for nonbusiness energy property credit or the residential energy efficient property credit. For more information about Residental Energy Credits, see Form 5695. These tips are provided to give you general information about your taxes. If you have specific questions, please consult a tax advisor or call the toll-free number for Federal Tax Information and Assistance at 1-800-829-1040.
