<p> Frequently Asked Tax Questions</p><p>The most common tax question relates to the Home Sale Exclusion. This is a tax provision that allows home owners to exclude a portion of the gain on the sale of their Personal Residence, providing certain requirements are met.</p><p>In general, the gain on a sale of a personal residence can be excluded from taxation. The limit is $250,000 for a single person and $500,000 for a married couple. The home must have been used for a personal residence for 2 of the past 5 years in order to qualify. </p><p>There are certain exceptions to this rule. For example, if a person lives in the personal residence for less than 2 years, a prorated portion of this gain can excluded if certain conditions are met (ie. move is due to job transfer over 50 miles away). If you want details on specific exceptions, please speak with a qualified CPA.</p><p>Be advised that this only relates to sales of a personal residence, not an investment property. Investment properties may qualify for a 1031 exchange tax deferral. Sales of personal residences cannot qualify for a 1031 exchange.</p>