My home was recently titled to me. I own it outright. If I sell the home & use the money for another home will i get hit with capital gains?

I've lived in the house for 5 years. I'm using the money from the house I'm selling to put as a down payment towards another home.

Asked by Tamer

1 Answer

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Answered by Kim Miller, CFP®PRO+ in Redmond, WA
Hi -
It sounds like this is your personal residence. As long as you have lived in the home for at least 24 months (two years) the sale of a personal residence receives special treatment under the IRS rules: for single taxpayers, up to $250,000 in gain is not taxed upon a sale and for married taxpayers, up to $500,000 in gain is not taxed upon a sale. Gains that exceed these limits are taxed at the long term capital gains rate of 15% or 20% depending on your other income. Good luck! | 10.24.14 @ 19:55
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$commenter.renderDisplayableName() — {comment} | 12.04.16 @ 18:49
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Answered by

Kim Miller
Kim Miller, CFP®PRO+ in Redmond, WA

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