[denaza]

I am selling my home.
I am also selling to the buyer furniture etc. (chattel)
Will I pay income tax on that revenue?

[AtlantaTaxExpert]

I assume this is in the U.S.

The house probably appreciated and is being sold at a profit. However, there is a exemption on paying taxes on the profit in the sale of your primary home. That exemption is $250,000 for a single person and $500,000 for a married couple. As long as the difference between what you paid on the house and what you sold the house for is less than these amounts, you will owe NO taxes on the sale of the house.

Now, the furniture is a different story. If you sold the furntire for MORE than what you paid for it, then, yes, you will owe income taxes on the profit. If not, then no income taxes are due. However, you CANNOT deduct the loss on this sale.

[MukatA]

Your sale of the house is reported (if required) separately from the sale of furniture (if required). On the sale of the house, as AtlantaTaxEpert said, you may exclude the gain up to $250,000 (or $500,000 if both spouses qualify). The words "if required" mean that if you gain is less than the exclusion amount and you qualify for exclusion, then you don't report the sale. Yes, you still keep all the record.

The furniture is your personal property. So only if you sell your furniture for more than your cost, then you report the profit only (you don't report the loss).

[AtlantaTaxExpert]

Agreed!