We just built a house 8 months ago for $227k and we owe somewhere in the 210-215 neighborhood..We are thinking about relocating and moving out of state.we would try to sell for 260k minus commission and other fees..Will we get charged taxes on the capital gains? I
If so whats the % w household income of 100k? and would they tax whatever we make over the purchase price (227k) or what we owe on the house (210-215k)...if we decide to wait at the 2 year mark would we be excluded to pay any capital gains?
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Tax Professional Answers
Since you have not lived in the house as your main residence for 24 of the past 60 months, you will owe tax, at capital gain rates on any profit realized from the sale. If you live in it for 24 months you can exclude up to $500,000 in gain. Profit is the sale price minus costs of sale minus your original cost of the house. Debt on the house is not a factor in determining gain or loss. Your capital gain rate would be 15% based on the information you provided.Leave a Comment 72 weeks ago