Sale of your home:           You can exclude up to $500,000 of the gain on the sale of your main home if you are filing a joint return, and up to $250,000 if single.     Generally the home is where you live and meet the Ownership and Use test.         Ownership and Use test : 1] Owned the home for at least 2 years 2] Lived in the home as your main home for at least 2 years during the 5-year period ending on the date of sale, it need not be a continuous period.       Land: If you sell only the land on which your main home is located, you cannot exclude any gain on the sale.       More than one home: In case you have more than one home, you can exclude gain only from the sale of main home. Main home is generally the home where you live in most of the time. Gain from sale of other home should be included in income.       Maximum Exclusion can be Reduced: You can claim exclusion, but the maximum amount of gain you can exclude will be reduced if 1] You did not meet the Ownership and Use tests, but the reason you sold the home was:   A. A change in place of employment, B. Health, C. Unforeseen circumstances   You may be allowed exclusion sale of more than one home during a 2-Year Period, if the reason you sold the home was:   A. A change in place of employment, B. Health, C. Unforeseen circumstances           Business Use or Rental of Home     You may be able to exclude gain from the sale of a home that you have used either for business or to produce rental income. However, you must meet the ownership and use tests. Also you must report the sale of the business or rental part on Form 4797.