The IRS allows a married couple who sell their long-time home to take a tax-free capital gain of up to:

The IRS permits a married couple filing jointly to exclude up to $500,000 of capital gains from the sale of their primary residence, provided they meet certain conditions. To qualify for this exclusion, the couple must have owned the home and used it as their primary residence for at least two out of the last five years prior to the sale. This provision is designed to help homeowners keep more of their profit from selling their home, allowing for a broader economic benefit while encouraging homeownership.

This substantial exclusion reflects the government's intent to support families in maintaining financial stability through homeownership. For singles, the exclusion is capped at $250,000, but for married couples filing jointly, it doubles, allowing for the higher limit of $500,000. Thus, recognizing the tax benefits available to married couples can significantly impact their financial planning when considering selling their long-term home.