Sale of Your Primary Residence
Code 121 of the Internal Revenue Code says that you qualify for up to $250,000 (or up to $500,000 for a married couple filing a joint tax return) tax-free principal residence sale profits if you own and occupy the home at least 24 of the 60 months before its sale.

The 24 months do not have to be consecutive – it could be the first 12 months and the last 12 months or some other combination. The question is- how do you prove (if you’re audited) that the home was your primary residence? It’s best to check with your tax adviser, but the most important items are voting, driver’s license, automobile registrations, and the filing of your income tax returns.

If your primary residence is located on an acreage tract, and you sell your home with less acreage than the entire tract, that can be a tax-free event as described above. If you then sell more of the adjoining property within a two-year period following the sale of your home, this can also be a tax-free event. It’s in the IRS Code, but you still need to consult your tax adviser.

Mum's the Word on Why You're selling

Mum's the Word on Why You're Selling - Revealing your motivation to sell your home almost always gives the buyer a strong negotiating advantage, warns Steve McLinden.