If my 70-year-old mom sells her house in Oregon and pays off her mortgage but does not buy another house will she have to pay taxes on the net if it is under 150K?
Answered by Keeper Staff ·
Hi there! If the home has been her primary residence for two of the last five years, she can probably exclude all or most of the gain.
The IRS allows single taxpayers to exclude up to $250,000 of capital gains on their primary homes ($500,000 if married filing joint), and Oregon has adopted the same exclusion policies as the federal government.