our house is probably your biggest investment. But the paperwork and tax implications don't end when you take title. Selling your home also demands careful consideration of the tax code, so use the following information to help you determine how selling will affect you next April.

Gain and loss
Understanding gain and loss on the sale of your home is imperative to assessing your tax situation. If you make money on the sale of your home, you may be able to exclude it from your income up to a limit of $250,000 for individuals and $500,000 for couples. You may not, however, deduct a loss from the sale of your home.

Keep concise records
In addition to the price you paid for the home, you'll need to have documentation regarding:

• Home improvements
• Selling expenses
• Maintenance costs

Know the breaks
Depending on your situation, you may be able to reduce your tax bill further by deferring gain, taking advantage of special provisions for business use or age-related tax breaks.

With effective planning and concise record keeping, you can control your tax burden. If you have questions about taxes and selling your home, consult your tax advisor.