Income tax rate on house sale in NJ?

Question

I am selling my home in NJ for $210k and using the money to pay off the remainder of the load ($108k) and a student load ($20k). Before I go off on a spending spree I need to know how much money to set aside for income taxes. Any ideas or rules-of-thumb that can help me here? And are the loan repayments going to be deducted from the taxable amount?

Any help you can give is appreciated.

Answer 1

If you have lived in the house for 2 of the last 5 years then you are exempt from taxes on the sale of a home unless you make over $250,000 of profit from the sale.
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If your situation is more complicated than that (like own another home, recently sold another home), then:
http://www.irs.gov/publications/p523/index.html
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