How to benefit from the home sale gain exclusion

Description

Abstract: Home prices are at record highs in some parts of the country and many people are looking to make career or lifestyle changes. This article explains that those considering downsizing or moving to another location could be in line for large tax breaks when they sell their homes. It points out that some taxpayers in these circumstances may be able to pocket up to a half million dollars in gain from the sale of their principal residences without owing any federal income tax. A sidebar explains how improvements to a home may affect the equation.