Capital Gains

When you sell your house, you may generally exempt $500,000 of capital gains on a joint tax return, or $250,000 on a single tax return. You qualify if the house was your primary residence for at least two of the last five years, and you may use the exclusion once every two years. If you have a second home that has significantly appreciated, talk to your tax advisor about considering making it your primary residence for two years, then selling it to get the tax break.