Tax tips for home sellers (and would-be sellers)
If you're selling your home, you're probably not thinking of the income-tax implications just yet -- April 15 seems so far away. But it's always best to be forewarned.
Owings Mills-based accounting firm Glass Jacobson is offering some tips to that effect, including these:
1. Generally, you are eligible to exclude the gain from income if you have owned and used the home as your MAIN RESIDENCE for two out of the last five years prior to the date of its sale.
2. If you have a gain from the sales of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return).
3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the 2 year period prior the sale.
In case you're wondering: If you sell your primary residence at a loss, you can't deduct that from your taxes, Glass Jacobson says. Sorry, folks.