Core Insights - The IRS allows significant exclusions on capital gains taxes for primary home sales, with exclusions of $250,000 for single filers and $500,000 for married couples filing jointly [2][8]. Tax Implications of Property Sale - Selling an asset, including real estate, may incur capital gains taxes based on the profit from the sale, calculated by subtracting the asset's cost basis from its sale price [4]. - The adjusted cost basis for real estate includes the purchase price plus any investments or improvements made, excluding repairs and maintenance [5][6]. Home Sale Tax Exclusion - The Section 121 Exclusion permits homeowners to exclude a portion of their profit from capital gains taxes, applicable only to primary residences [10]. - To qualify for the exclusion, homeowners must have owned and used the property as their primary residence for at least 24 of the last 60 months, and cannot have taken the exclusion in the previous two years [10].