Kelly Phillips Erb,

The home sale exclusion is available to qualifying taxpayers—no matter your age—who have owned and lived in their home for two of the five years before sale.

Home sales took a hit in 2023. According to the National Association of Realtors, the annual pace of 2023’s existing home sales—totaling 4.09 million—was the lowest number recorded since 1995, when it was 3.85 million. Experts cite many potential reasons, including post-pandemic buyer burnout, rising mortgage rates, and low inventory.

However, there was some good news for sellers: the median sales price in 2023 hit a historical high of $389,800, up 1% from 2022.

The mix of news means that homeowners were grappling with volatility in home sales in 2023. That may translate to confusion at tax time. Here’s what you need to know.

To read the full article about the tax implications of a home sale, click here!