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Commentary

US2.3.1 Exemption from tax for principal residence

USA

Contributed by: Tonya S James, Partner at Vacovec, Mayotte and Singer LLP

The sale of real property in the United States is subject to the capital gains tax. The rate of tax that applies will vary depending on the holding period for the property and the property's use during the period of ownership.

US2.3.1ÌýÌýÌýÌý Exemption from tax for principal residence

The US tax rules allow a taxpayer to exclude certain gains from the sale of the taxpayer's main home, identified as the principal residence in the US Internal Revenue Code. The exclusion amount can be up to USD 250,000 for taxpayer, and up to USD 500,000 where the taxpayer and spouse file a joint tax return.

The taxpayer

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Web page updated on 17 Mar 2025 13:20