Capital gains from the sale of a primary residence can be excluded from federal taxes up to:
Correct Answer
A) $250,000 for single filers, $500,000 for married filing jointly
Under IRC Section 121, homeowners can exclude up to $250,000 of capital gains ($500,000 for married filing jointly) from the sale of a primary residence if they've owned and lived in the home for at least 2 of the 5 years before the sale.
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