No state income tax. The federal rules still apply.

The three federal tests in plain English

1. Ownership.You owned the home for at least 24 months of the 5 years ending on the date of sale.
2. Use.You lived in it as your main home for at least 24 months of those 5 years. The months do not have to be continuous.
3. Look-back.You did not exclude gain from another home sale during the two years before this sale.

Married couples filing jointly can generally exclude up to $500,000 when either spouse meets the ownership test, both meet the use test, and neither used the exclusion in the prior two years. IRS Publication 523 has the complete rules and worksheets.

Situations common in The Villages

Heirs are different again. An inherited home generally takes a basis equal to its fair market value on the date of death, which can shrink the taxable gain. Read the inherited-house guide →

Build your gain worksheet before you list

1. Adjusted basis.Start with what you paid, add certain purchase costs and capital improvements such as additions, a new roof, or a pool, and subtract items such as depreciation claimed while the home was rented.
2. Amount realized.The sale price minus selling expenses, such as brokerage compensation, deed stamps, and title and closing costs you paid.
3. Gain.Amount realized minus adjusted basis.
4. Exclusion.Subtract the exclusion you qualify for. A remaining gain is generally reported on Form 8949 and Schedule D.
5. Paperwork.If the closing agent issues Form 1099-S, the IRS says you must report the sale even when the entire gain is excludable.

Mo can gather the purchase closing statement, permits for improvements, and a realistic sale range so your CPA works from real numbers rather than estimates. Estimate your selling expenses →

Sellers who are not U.S. persons: FIRPTA

When the seller is a foreign person for U.S. tax purposes, the buyer is generally the withholding agent and must withhold 15% of the amount realized under FIRPTA. There is no withholding when the buyer will use the home as a residence and the amount realized is $300,000 or less, and a reduced rate can apply up to $1 million. Withholding is a prepayment, not the final tax, and the standard Florida contract assigns FIRPTA withholding and reporting charges to the seller. Seasonal owners who live outside the United States should plan with a cross-border tax adviser before listing, because withholding changes the cash at closing.

What Mo will and will not do

Mo is a REALTOR®, not a CPA. He will help you choose a listing window that fits the timeline your adviser recommends, document the property facts that affect basis and selling expenses, and keep closing documents organized. He will not tell you whether you qualify for an exclusion or how to report a sale.