How the Primary Residence Capital Gains Exclusion Works in 2026

Selling your home? The IRS lets single filers exclude up to $250,000 of profit from capital gains tax, and married couples filing jointly can exclude $500,000. But the rules have traps: the two-out-of-five-year ownership and use test, how to count time if you've worked from home, and what happens if you sell before two years. Lucas and Luna walk through a concrete example of a couple selling a home in Austin, Texas, and show how the exclusion saved them over $70,000 in taxes compared to a non-qualified sale. Plus, strategies for maximizing the exclusion when you've turned part of your home into a rental or home office. If you're planning to sell in 2026 or 2027, this episode is a must-listen. #PrimaryResidenceExclusion #CapitalGains #TaxStrategy #Section121 #HomeSale #IRS #2026Tax #RealEstateTax #HousingMarket #HomeOwnership #TaxExclusion #MarriedFilingJointly #Finance #TaxPodcast #TheTaxStrategyPodcast #FexingoBusiness #BusinessPodcast #Fexingo Keep every episode free: buymeacoffee.com/fexingo