I have a question about paying taxes on selling a house. Can I claim a loss on the sale of m home?
You do not pay taxes on selling a house if you lived in your home for two years before selling the home then up to $250,000 profit is tax-free; if you are married and file a joint return then $500,000 of the profit is tax-free.
You can’t claim a loss on the sale of your main home unless you used it for business. You should only report the sale if you:
- Rented the home at some time in the past
- Took a deduction for a business use of the home
- Received a Form 1099-S reporting the sale to you
If you are just getting your tax documents together and figuring out what to do next, here is a handy checklist to help you keep everything organized.
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