In most cases, individuals may sell their primary residence every two years and exclude various amounts from the real estate tax. In general, single individuals may deduct two hundred and fifty thousand dollars and married couples my deduct double that amount, before determining if there was a capital gain from the sale of the property.
In the past, these exclusions from the capital gains tax rate on real estate only applied in certain circumstances, such as for the elderly. There had also been a lifetime excision which allowed individuals to deduct a certain value from the real estate tax, over their entire lifetime.
However, in most cases, the rules have changed to allow most individuals to take advantage of more extensive exclusions and deductions. Individuals must simply live in the home as a primary residence for two years, before making the sale, in order to take advantage of exclusions and larger deductions.