Principal residence exemption
Did you know that any profit–called capital gain–on the sale of your principal residence may be exempt from taxes? Generally, you do not have to pay tax on a capital gain when you sell your home if it was your principal residence for all the years that you owned it. If you sold a property that was your principal residence, you must report the sale and designate the property as your principal residence. Only one property can be designated as a principal residence per tax year per family unit.