Due to her job, homeowner Sophie has spent the past ten years buying and selling a number of properties. She may use the capital gains exclusion once every two years if she sells a home for more than she bought for it.
If you sold your primary residence and realized a capital gain, you might be able to exclude up to $250,000 of that gain in your income, or up to $500,000 if you filed a joint tax return with your spouse.
Every two years, you are allowed to exclude capital gains on the sale of your primary house. You must fulfill the usage and ownership conditions at a separate dwelling if you want to use the capital gains exclusion multiple times.
The exemption is cumulative and lasts a lifetime. If you sell eligible property, you can use any portion of it at any time throughout your lifetime. You don't have to submit your claim for the complete sum at once.
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