How does the $250,000 and $500,000 home sale exclusion work?

The home sale exclusion named in the question lets an eligible owner exclude a set amount of profit on the sale of a primary residence from federal capital gains tax, with a higher amount available to a married couple filing jointly. To qualify, an owner generally must have owned and lived in the home as a main residence for enough of the recent years before selling. This exclusion is federal tax law, not something South Carolina sets on its own, so confirm your specific situation with a tax professional rather than relying on a general answer.