by Myles Biggs
That’s right. If you are married and file a joint tax return
with your spouse, up to $500,000 of profit from the sale of your home is tax
free. If you are single, than up to $250,000 of profit from the sale of your
home is tax free.
In order to exclude profits from the sale of your home, the
property must have served as your primary residence for two out of the past
five years. Those two years do not have to be consecutive.
This ability to retain the profits from the sale of your own
home is a huge advantage over renting. Unlike rent payments, you can think of a
mortgage payment as a monthly investment that will pay you dividends in the future.
Did you miss part one of this series? Click here
for more information about mortgage interest deductions.