Question: Can I get a tax break if I downsize to a smaller home
Answer:
Regardless of your age, if you have owned and lived in your home for two years during the five years before the sale of your home, you are generally allowed up to $250,000 in tax-free profit without owing capital gains tax. If you are married and file a joint return, you would generally be allowed up to $500,000 in tax-free gain from the sale of your home.
October 04, 2006