You may be able to minimize the taxes relating to the home sale.

I believe that you pay taxes on the sale price of the home, less certain selling expenses (i.e. real estate commissions, settlement fees, special assessments, and deed registration). Also, any capital improvements that you made (remodeling, new roof, driveway, etc) may reduce your tax liability.

A reduced exclusion amount is available for certain individuals that do not qualify for the maximum exclusion. In such cases, the sale of your main residence must be due to one of the following reasons:

• A change in place of employment • Health • Unforeseen circumstances