Over-55 Home Sale Exemption

The over-55 home sale exemption is a tax break that allows people who are 55 or older to exclude up to $250,000 of gain from the sale of their principal residence. This exemption is available to both single taxpayers and married couples filing jointly.

To qualify for the over-55 home sale exemption, you must meet the following requirements:

* You must be 55 years old or older on the date of the sale.
* You must have owned and lived in the home for at least two of the five years prior to the sale.
* You must not have used the home as a rental property during the two-year period.

If you meet all of these requirements, you can exclude up to $250,000 of gain from the sale of your home. This means that you will not have to pay taxes on any of the profit that you make from the sale, up to $250,000.

There are a few exceptions to the over-55 home sale exemption. For example, you cannot claim the exemption if you sold your home to a family member or if you used the proceeds from the sale to buy another home.

If you are considering selling your home and you are 55 or older, you should talk to your tax advisor to see if you qualify for the over-55 home sale exemption.

The over-55 home sale exemption is a valuable tax break that can save you a lot of money. However, it is important to understand the requirements and exceptions before you claim the exemption.