The Benefits of Selling Your Home

There is a worksheet in IRS publication 523 called Selling Your Home that you can use to figure out your home's basis and any gain that you can exclude. You don't even have to report it on your tax return because the entire transaction is tax-free. So this is a serious benefit that you can take advantage of every two years if you meet the eligibility requirements. However, there are legal exceptions where you qualify for the gains exclusion even if you sell your home before living in it for two of the previous five years.