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.
Answers | 1
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!