The United States tax code is complex. Many taxpayers have trouble figuring out what does and doesn’t need to be reported as income, particularly if the money is related to the sale of personal property. In many cases, the value of a person’s home goes up in the years after they buy. When this occurs, there is a financial gain from the sale, creating a profit. If you’re asking yourself, “Is money from the sale of your house considered income?” here’s what you need to know.
Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.