DEFERRED GAIN ON SALE OF HOME

An obsolete tax law that applied to homeowners before May 7, 1997. The Deferred Gain on Sale of Home rule mandated that those who realized a capital gain on the sale of their residences could defer this gain if the sale proceeds were used to purchase a more expensive home. This tax deferral was called a rollover.

The Deferred Gain on the Sale of Home rule was superseded by the Tax Relief Act of 1997. The law now states that all homeowners can exclude up to $250,000 of capital gain on the sale of their residences from taxation unconditionally. Married couples filing jointly can exclude up to $500,000.