personal residence exclusion

The personal residence exclusion is a tax benefit that allows homeowners to exclude up to a certain amount of profit from the sale of their primary home from capital gains taxes. In the U.S., if you’ve lived in the home for at least two out of the five years before selling, you can exclude up to $250,000 of gains if single, or $500,000 if married filing jointly. This means you won’t pay taxes on that portion of the profit, making it easier to benefit financially from your primary residence.