In general, money from the sale of a house is not considered income in the traditional sense, at least not for personal residences. When you sell your primary residence, the profit you make from the sale (the selling price minus the purchase price, minus any allowable expenses or improvements) is typically not considered taxable income. This is because of the home sale exclusion provided by the IRS.
Under this exclusion, if you meet certain criteria, you can exclude up to $250,000 of the gain from your income if you’re a single filer, or up to $500,000 if you’re married filing jointly. However, if you sell property that isn’t your primary residence, such as investment property or a vacation home, the rules may differ, and you may have to report any profit as capital gains on your tax return.
It’s always wise to consult with a tax professional or accountant for specific advice regarding your individual situation, as tax laws can be complex and subject to change.