Originally Posted by zippyjuan

At this time, you can get $250,000 in profits tax-free for an individual or $500,000 for joint filers in property gains over your original purchase price if you have lived in the property as your primary residence for an agregate two of the five years prior to the sale. If you save receipts for home improvements (replacing carpet dosen't count), you can add those costs to your initial value (cost basis) of your house or condo.