Tax Relief For Some Financially Distressed Homeowners

Points paid when you purchase your home are generally deductible in that year. Mortgage interest and real estate taxes paid on your home are deductible. When you sell your home that you owned and lived in for 2 of the last 5 years, the gain on the sale of up to $250,000 ($500,000 for married filing jointly) is not taxable if it has not been used for nonpersonal use after December 31, 2008. If you have an office in your home, that portion of your home is considered business property. If you sell your home, you may be able to exclude the gain on the sale except for the amount of any depreciation claimed after May 6, 1997.