When do I report the sale of my home to the IRS?
You do not need to report the sale of your home to the IRS if both these conditions are met:
  • If the profit from your home sale is $250,000 or less for singles or $500,000 or less for married couples
  • If you have lived in the home as your primary residence for 2 of the last 5 years before the sale date
If both these conditions apply, your closing agent may ask you to sign a Certification for No Information Reporting on the Sale or Exchange of a Principal Residence at closing.
If both of these conditions do not apply, your real estate or escrow agent will file a Form 1099-S with the IRS and you will be taxed on the capital gains from the sale of the property.

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