Real Estate & Mortgage
Section 121 Home Sale Exclusion
Estimate taxable capital gain after applying the Section 121 primary residence exclusion.
Your inputs
Change any value to update the result instantly.
Taxable capital gain
10,000
Total capital gain
2,60,000
Exclusion applied
2,50,000
Estimated tax owed
1,500
Section 121 requires owning and using the home as a primary residence for 2 of the last 5 years.
Formula and working
Taxable gain = max(0, (Sale price − Basis − Selling costs) − Exclusion amount)
- 1
Collect the inputs
Sale price = 650,000; Adjusted cost basis = 350,000; Selling costs = 40,000; Filing status = 250,000 $ exclusion; Capital gains tax rate = 15 %
- 2
Apply the formula
Taxable gain = max(0, (Sale price − Basis − Selling costs) − Exclusion amount)
- 3
Result
Taxable capital gain = 10,000
Frequently asked questions
Important limitation
This is an educational estimate based only on the values and formula shown. Verify current rates, rules, units, and professional standards before relying on the result. It is not personalized financial or investment advice.
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