If you sell or exchange your home, you may be able to exclude up to $250,000 ($500,000 for certain married persons filing a joint return) of the gain on the sale or exchange if you meet the ownership and use tests.
Ownership and use tests.
To claim the exclusion, you must meet the ownership and use tests. This means that during
the 5-year period ending on the date of the sale, you met both the following tests.
You owned the home for at least 2 years (ownership test).
You lived in the home as your main home for at least 2 years (use test).
Business Use of Your Home
Information courtesy of the Internal Revenue Service.
