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.
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