Tax implications are deeply interwoven into the experience of home ownership. The tax deduction for home mortgage interest ensures that this is the case.
But the deductibility of mortgage interest is not the only tax issue that can affect homeowners. For one thing, the taxation of mortgage debt relief following a foreclosure or short sale has been an ongoing issue in recent years. We discussed that issue in our September 16 post.
In this post, we will discuss a question that invariably comes up when a house is sold. How much of the profit from the sale of a home can be excluded from income?