By David Parks · eXp Realty · The Apollo Group · 2 min read
Many homeowners can exclude a large part of the profit from selling their primary residence from federal income tax if they meet ownership and use tests. Rules are detailed, so confirm with a tax professional.
Under federal law, eligible sellers may exclude up to $250,000 of gain, or up to $500,000 for many married couples filing jointly, from the sale of a main home.
Your gain is generally the sale price minus selling costs and your adjusted basis, which includes the purchase price and certain improvements. Keep records of major improvements.
Rental use, home offices, partial years, divorce, and inherited homes can change the rules. State tax rules may also apply.
This is general information, not tax advice. A CPA or tax attorney can tell you how it applies to you before you list.
This article is general information, not legal, tax, financial or inspection advice. Every home and situation is different, so confirm details with a licensed inspector, lender, attorney or tax professional.
David is a Greater Denver real estate advisor with eXp Realty and The Apollo Group (Colorado broker license FA100103211). He has closed more than $55 million in volume, earned eXp Icon status in 2025, and holds a 5.0 rating on Zillow from 27 verified reviews.
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