The Best Home Sale In 2018 Tax Treatment References. If you sell your second home, the gain will be taxed as a: Accordingly, after the tcja, a sale of a patent whose treatment under section 1221 (a) (3) would be ordinary income may still generate capital gains treatment if it can satisfy the.

When it comes to the federal income tax treatment of real estate sales it is very important how you treat your real estate gains and losses. The profits you make from flipping real estate are generally considered to be fully taxable as business income. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).