701 (2026)

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

To qualify for this exclusion, you generally must meet two main tests within the ending on the date of the sale: This is a complete exclusion, meaning you don't

: You must have lived in the home as your main residence for at least 24 months . This is a complete exclusion

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. 000 of capital gains.