What are the capital tax gain consequences if your primary home is sold just 3 months shy of the 2 year mark?

Answer 1

The same as if you sold it immediately after you bought it. Hold out for a few more months!

Answer 2

The best thing to do is wait if you can. There is a provision in taxes that you can prorate the time you lived there as a personal residence. It will give you a credit for the time you did live there and you will still be taxed on the capital gain of the house. Go to a CPA for your taxes to make sure it is done right. H&R block and places like that may not catch it and the whole thing will be taxable.

Answer 3

Depends upon why you are selling. If you are selling for health reasons or because of a change in your place of employment, you may be able to exclude a prorated amount of gain from your income. If not, then you must recognize your full gain and pay tax at capital gain rates, which are generally capped at 15% for such gains.

Consult your own tax advisor for complete advice.

Answer 4

any gain at this point is treated as ordinary income since you have not held the property for 2 years. I would TRY to hold out a couple of months to avoid that since it will be a huge tax on the gain!

Answer 5

keep it for three more months and the money is yours free and clear. but if you have to sell, some exclusions apply, like divorce, job change, and can no longer afford it, etc. get an accountant involved. also have all the receipts for home improvements which you can deduct against the gain on the sale.