The IRS Allows You To Exclude $500,000 In Profit From A Home Sale

Q: We have two combined lots that we bought in 1984 for a total cost of about $50,000. There is a rumor of a one-time $500,000 break on taxes, but is that just on the house? If you are married, own a home and use it as your primary residence for at least two out of the last five years, you get to exclude $500,000 of profit from federal income taxes.