I went to the IRS web site and copied and pasted the answers to the most common and obvious questions home sellers ask about taxes. [Ten tax tips for individuals selling their home]
In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.
If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).
You cannot deduct a loss from the sale of your main home.
If you bought a home in 2106 or own a home with a mortgage you may also have some tax deductions. [publication 530- main content]
There are some in the real estate industry who believe that people buy homes because of the mortgage interest tax deduction.
