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Capital Gains

I am 74 years old. Do I need to pay Capital Gains on the following:

Sold my house on 1/19/24 for $550,000 and purchase my new house on 3/29/24 for $456,810.

Best answer by NCPERSON1

@PMDRIS32 that you reinvested the proceeds into a new home has no bearing on the outcome.

What matters is how much profit you earned on the home you sold. I'll assume you lived in it and owned it for at least two of the past 5 years.

In that case, filing single. there is no tax on the first $250,000 of capital gains. And if married, no tax on the first $500,000 of gains.

if you are a widow, it's a little tricker to explain. post back if that is the case.

@PMDRIS32 that you reinvested the proceeds into a new home has no bearing on the outcome.

What matters is how much profit you earned on the home you sold. I'll assume you lived in it and owned it for at least two of the past 5 years.

In that case, filing single. there is no tax on the first $250,000 of capital gains. And if married, no tax on the first $500,000 of gains.

if you are a widow, it's a little tricker to explain. post back if that is the case.

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