A reminder on calculating gain or loss from the sale of your primary home. You start with the amount of gross proceeds reported in box 2 of Form 1099-S and then subtract selling expenses such as commissions to arrive at amount realized. You then reduce that figure by your tax basis in the home to come up with gain or loss. Taxpayers who have owned and used the property as their principal residence for at least two out of five years before the sale can exclude up to $250,000 of the gain… $500,000 if married. Losses from sales of primary homes aren’t deductible. IRS Publication 523 has details, including whether you need to report the sale at all. Here’s an easing on the home-sale gain exclusion for those in nursing homes. The normal two-out-of-five-years use requirement to qualify for the gain exclusion when selling a principal residence is lowered to one out of five years preceding the sale for homeowners who can’t care for themselves and have moved to a nursing home.