If I lived in my primary house for 1 year and 4 months and then sold it to buy another, do I have to pay capital gains tax in each of these scenarios and how much?I take all the profit and used it as a down payment on the new house.I use half of the profit as a down payment and the other half to pay off debts or for other purposes.Details:House bought for $300,000Sold for $425,000Profit: $100,000 after paying the bank for the remaining balance of the loan, both seller and buyer agents, and all required taxes and fees.Thank you

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Question

Capital Gains

Forum|Forum|1 year ago
February 5, 2025
1 reply
0 views

If I lived in my primary house for 1 year and 4 months and then sold it to buy another, do I have to pay capital gains tax in each of these scenarios and how much?

I take all the profit and used it as a down payment on the new house.
I use half of the profit as a down payment and the other half to pay off debts or for other purposes.

Details:

House bought for $300,000
Sold for $425,000
Profit: $100,000 after paying the bank for the remaining balance of the loan, both seller and buyer agents, and all required taxes and fees.
Thank you

Bsch4477

Employee

Your scenarios 1 and 2 are irrelevant. You pay capital gains on the difference between your original cost plus any capital improvements and your proceeds from the sale less commission and closing costs.