What is the §121 exclusion?

$250,000 if you file single, HOH, or MFS. $500,000 if married filing jointly and both spouses meet the use test. You must have owned and used the home as a primary residence for 2 of the last 5 years.

What if I lived there only 12 months?

No full exclusion. Check unforeseen circumstances (job, health, similar) to prorate: exclusion × (qualifying months / 24).

Does depreciation vanish?

No. Depreciation taken after May 6 1997 cannot be excluded. It stays in taxable gain even when §121 otherwise applies.

Is this the same as the long-term gains page?

That page rates leftover taxable gain at 0/15/20% plus NIIT. This page only sizes the §121 exclusion.

Runs in your browser · Last updated 7 September 2026

Free Home Sale Capital Gains Exclusion Calculator (US §121)

Free home sale capital gains exclusion calculator. $250k / $500k Section 121, 2-of-5 tests, unforeseen proration. Browser tool — nothing is uploaded.

Filing statusSale price ($)Selling costs ($)Adjusted basis ($)Months owned in last 5 yearsMonths used as primary (you)Months used as primary (spouse)Depreciation taken after May 6 1997 ($)Unforeseen circumstances (prorate if under 24 months)

Ownership and use tests look met (2 of the last 5 years). Depreciation cannot be excluded. Not a Form 8949.

Realized gain

$385,000

§121 exclusion

$385,000

Taxable gain

Max exclusion

$500,000

Depreciation still taxable

Qualifying months

How to use this tool

Pick filing status and enter sale price, selling costs, and basis.
Enter months owned and used as a primary home in the last five years.
Read realized gain, exclusion, and leftover taxable gain.

Worked example

Single, $600,000 sale, $36,000 selling costs, $200,000 basis, 40 months owned and 36 used: $364,000 realized gain, $250,000 excluded, $114,000 taxable. Joint filers with $900,000 sale, $50,000 costs, $300,000 basis and both over 24 months of use get the $500,000 cap and $50,000 leftover. A 12-month stay with unforeseen checked is half the cap, and $20,000 of depreciation stays taxable.

Frequently asked questions

What is the §121 exclusion?: $250,000 if you file single, HOH, or MFS. $500,000 if married filing jointly and both spouses meet the use test. You must have owned and used the home as a primary residence for 2 of the last 5 years.
What if I lived there only 12 months?: No full exclusion. Check unforeseen circumstances (job, health, similar) to prorate: exclusion × (qualifying months / 24).
Does depreciation vanish?: No. Depreciation taken after May 6 1997 cannot be excluded. It stays in taxable gain even when §121 otherwise applies.
Is this the same as the long-term gains page?: That page rates leftover taxable gain at 0/15/20% plus NIIT. This page only sizes the §121 exclusion.
Uploaded?: No.