Are you selling a personal residence in 2019? If you lived in the home for two out of the five years before the sale date, there may be some good news for you.
Under current tax laws, IRS allows for individuals to exclude up to $250,000 of income from the sale of a personal residence. If both spouses lived in the home for two out of the five years before the sale, this means that you can exclude up to $500,000 of income from your tax return. That’s a lot less taxable income to report. More information about the “Section 121 Exclusion can be found at https://www.irs.gov/taxtopics/tc701.
Clergy Financial Resources addresses issues like home sales during our 1040 review process. If you want to hire CFR to complete your 1040 return, visit our website at https://www.clergytaxnet.com/services/clergy-tax-preparation/.
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
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