Taxes 101
Real Estate

Homes, Buying or Selling

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 non-personal use after December 31, 2008.

A surviving spouse who sells a principal residence within two years of the date of death of the spouse may exclude up to $500,000 of the gain if the ownership and use tests were met immediately before the date of death.

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.