How the Tax Code Treats Your Home Sale Profits in 2026

When you sell your home, the tax code has a surprise waiting: up to $250,000 of profit for single filers, or $500,000 for married couples, can be completely tax-free, thanks to the Section 121 exclusion. But it's not automatic. In this episode, Lucas and Luna unpack how the exclusion really works, including the two-out-of-five-years ownership and use test, the once-every-two-years limit, and the partial exclusion that can help if you sell early due to a job change or health issue. They also explore the quirky cases—like converting a rental property into your primary residence—where the exclusion doesn't fully apply, and what happens if your gain exceeds the limit. With a sharp focus on real numbers and practical scenarios, this episode gives you the tools to estimate your own tax bill before you list your house. If you're a homeowner, a first-time seller, or just curious about how the government treats your biggest asset, this one's for you. #TaxPolicy #Economics #HomeSale #CapitalGains #Section121 #RealEstateTax #Homeowners #TaxExclusion #PropertyTax #IRS #FexingoBusiness #BusinessPodcast #Finance #Money #TaxTips #HomeSelling #RealEstate #TaxSeason Keep every episode free: buymeacoffee.com/fexingo