Taxes and Selling Your Home in Monterey
An individual can exclude (not pay taxes) on up to $250,000 profit on a home if he/she 
has lived in the home for two of the last five years. If you file a joint return you can 
exclude up to $500,000 in most cases. The home must be or have been your primary residence. Any gain/profit on the sale of your house above these amounts are taxable. You will be able to deduct most items related to the sale of your home as well as any capital expenditures. The Internal Revenue Service has several publications that may be of interest to you. If you don’t meet the two out of five years rule for living in your home - there can be a partial exemption in some cases such as having to relocate for a job, health reasons, etc. . Consult a good accountant before you sell your home!