Taxpayers may exclude up to $250,000 of capital gain (or $500,000 if filing jointly) on the sale of a principle residence. This exclusion from gross income may be taken any number of times, provided the home was the filer's primary residence for an aggregate of at least 2 of the previous 5 years.
Comment: Massachusetts does not adopt the cancellation of Indebtedness on Principal Residence; for federal tax purposes, the exclusion from gross income for qualified principal residence indebtedness that was discharged has been extended until December 31, 2018. Massachusetts does not adopt the extension of the exclusion because it was enacted after January 1, 2005.
Origin: IRC § 121
Tax Type
Tax Expenditure
Item Number
Item Name
Description
Origin
FY2016
FY2017
FY2018
FY2019
FY2020
Personal Income Tax
Exclusions from Gross Income
1.021
Exemption of Capital Gains on Home Sales
Taxpayers may exclude up to $250,000 of capital gain (or $500,000 if filing jointly) on the sale of a principle residence. This exclusion from gross income may be taken any number of times, provided the home was the filer's primary residence for an aggregate of at least 2 of the previous 5 years.<BR><BR>Comment: Massachusetts does not adopt the cancellation of Indebtedness on Principal Residence; for federal tax purposes, the exclusion from gross income for qualified principal residence indebtedness that was discharged has been extended until December 31, 2018. Massachusetts does not adopt the extension of the exclusion because it was enacted after January 1, 2005.
<a href="http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00000121----000-.html" target="_blank">IRC § 121</a>
349.8
380.2
447.2
527.0
543.1
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