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June 6, 2019
Question

If you sell your home for profit, do you pay taxes on the profit im arkansas? I am single and lived in the home for more than two years

  • June 6, 2019
  • 1 reply
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So if i made a profit of 25k, would the state of arkansas tax that and do I have to put that toward the next home I buy?

    1 reply

    Employee
    June 6, 2019

    No, you should not have to pay tax on your $25,000 gain if you meet all of the following three tests: 

    • Ownership: You must have owned the home for at least two years during the five years prior to the date of your sale. 
    • UseYou must have used the home you are selling as your principal residence for at least two of the five years prior to the date of sale.
    • TimingYou have not excluded the gain on the sale of another home within two years prior to this sale.

    No, you do not have to put the $25,000 gain toward the purchase of your next home.

    To find out more about selling your home, please see: Selling Your Home