Escrow & Title

A Mississippi seller who has lived in the home as their primary residence for two of the five years before the sale may qualify for the federal capital gains tax exclusion of:

A$100,000 for single filers and $200,000 for married filing jointly
B$250,000 for single filers and $500,000 for married filing jointly✓ Correct
C$500,000 for all filers
DNo exclusion is available

Explanation

Under IRC Section 121, homeowners who have owned and used the home as their primary residence for at least two of the five years before the sale can exclude up to $250,000 in capital gains ($500,000 for married couples filing jointly) from federal income tax.

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