• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Exclude tax on home installment sale

by on
in Small Business Tax

Q. I’m selling my home on the installment basis. Does this qualify for the home sale exclusion? S.M., Yardley, Pa.

A. Yes, as long as you meet the requirements for the exclusion (i.e., you’ve owned and used the home as your principal residence for at least three of the five previous years). The maximum exclusion is $250,000 for single filers and $500,000 for joint filers. You still must pay tax on any profit above the applicable amount, but tax is due only as payments are received. Thus, you can defer tax on a high-priced sale.

To qualify for installment sale treatment, payments must be received over at least two years.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/20769/exclude-tax-on-home-installment-sale "

Related Articles...

    No matches

Leave a Comment