<p>“the profits of selling house will be treated as income at that year”, is it correct? </p>
<p>yes, except under the following circumstances:</p>
<p>If you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free.
If you are married and file a joint return, the tax-free amount doubles to $500,000. The law lets you “exclude” this much otherwise taxable profit from your taxable income. (If you sold for a loss, though, you can’t take a deduction for that loss.)
You can use this exclusion every time you sell a primary residence, as long as you owned and lived in it for two of the five years leading up to the sale, and haven’t claimed the exclusion on another home in the last two years.</p>
<p>[Tax</a> Aspects of Home Ownership: Selling a Home - TurboTax® Tax Tips & Videos](<a href=“Tax Aspects of Home Ownership: Selling a Home - TurboTax Tax Tips & Videos”>Tax Aspects of Home Ownership: Selling a Home - TurboTax Tax Tips & Videos)</p>