The 121 Home Exclusion, often referred to as the “primary residence exclusion,” is a provision in the U.S. tax code (specifically Section 121 of the Internal Revenue Code) that allows homeowners to exclude a significant amount of capital gains from the sale of their primary residence from their taxable income. Here’s a detailed explanation: 1. Exclusion Amount: • Individuals: If you are a single homeowner, you can exclude up to $250,000 of capital gains from the sale of your primary residence. •
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