Short answer
Often not. If you owned and lived in the home as your main home for at least 24 months of the 5 years before the sale, the IRS lets you exclude up to $250,000 of gain from income, or $500,000 for a married couple filing jointly. The 24 months don't have to be in a row. Some people who move early for work, health or other qualifying reasons can get a partial exclusion.
What are the ownership and residence tests?
- Ownership: you owned the home at least 24 months of the 5 years before closing. For a married couple filing jointly, only one spouse needs to meet this.
- Residence: you lived in it as your main home at least 24 months (730 days) of those 5 years. Each spouse must meet this for the full joint exclusion.
- Look-back: generally, you didn't use the exclusion on another home sale in the 2 years before this one.
Short absences such as vacations still count as time living there.
Are there exceptions?
Yes. The IRS has special rules for separated or divorced owners, surviving spouses, and members of the military, intelligence community and Peace Corps on qualified extended duty, who can suspend the 5-year period. A home acquired through a 1031 exchange in the last 5 years doesn't qualify.
Will I get a tax form at closing?
You may get Form 1099-S from the closing agent. Whether you need to report the sale depends on your gain and whether you qualify for the exclusion, so share it with your tax preparer.
Selling to buy your next NH home?
See buying before you sell and paying off your mortgage when you sell. Tom doesn't give tax advice; a tax professional can confirm how the rules apply to you.
Sources
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.