Help with the Earned Income Credit?

Question

Last year I sold my house before I lost it to forclosure. Apperently, it was a bad company. I never recieved the difference between the sale and the payoffs. I didn't even get the real closing papers for six months. I did have a gain on the house, but not more then $250,000. The reason it went into forclosure was because I had a bad accident which resulted in me not being able to work much. I read the qualifications for the EIC. The only rule I am concerned about is the less then $2900 investment income. Because this was may home, would this exclude me.

Answer 1

If your gain was under $250K ($500K on a joint return) and you lived in it and owned it for at least two of the 5 years immediately before the sale, you don't have to report it, so it wouldn't affect your EIC eligibility.

Answer 2

If you made less than a 250K profit your dollars related to the sale of your main home will not even get close to or appear on your tax return so the whole question is moot for you. Wipe it from your memory.  If you have any other tax related questions don't hesitate to ask; I do about a thousand returns a year and this time of year I am bored and restless and like to keep my thought processes working by answering questions.