If you sell your home, you may exclude up to $250,000 of your capital gain from tax -- or up to $500,000 for married couples. The 1997 Taxpayer Relief Act contained a big break for homeowners. If you sell your home, you may exclude up to $250,000 of your capital gain from tax. For married couples filing jointly, the exclusion is $500,000. The law applies to sales after May 6, 1997. To claim the whole exclusion, you must have owned and lived in your residence an aggregate of at least two of five years before the sale (this rule is called the "ownership" and "use" test). You can claim the exclusion once every two years. here
Wise advise from Miss Marple,kayak and Chair..always consult a lawyer.