There is an exemption in the US on the sale of a property if you lived in it for 2 of the last 5 years prior to the sale. For a single filer, the exemption is $250,000 and for joint filers it is $500,000. Any profit above these exemptions will be taxed as a capital gain. If you did not live in the property for 2 of the last 5 years prior to the sale, then the property is deemed an investment and will be taxed as a capital gain.