How do you make $250,000 – $500,000 and never pay taxes?
The IRS has setup a great way for you to take up to $500,000 in TAX FREE gains on the sale of your personal residence. If own a property, and live in it for at least 2 years you do not have to pay any taxes on the gain – up to $250,000 if you are single, or $500,000 if married and filing jointly.
You can do this with rental or investment property as well. As long as you meet the requirements above this applies to any property you own. You can not use this exclusion if the property is part of a 1031/Starker Exchange.