How long do you have to own your house before selling it and paying a huge tax on it? TKS?

Answer 1

The correct information is:

1. The home has to be your principal residence (not a second home or vacation home).

2. You have to have lived in and owned the home for 2 of the previous five years before the sale.

If you meet both of the above conditions, then you will not pay income tax on the first $250,000 of gain (if not married), or $500,000 of gain i(f married).

You get a pro-rata waiver of condition 2 if you sell your home to move to a new job. Some adjustments are also made if only one spouse meets both conditions.

Answer 2

2 years out of the 5 as we talk merely before the sale, and intensely own it for 2 of those comparable 5 years. you could exclude as much as $250K of make the main of being taxed - $500K if submitting a joint return. it is everywhere interior the U. S., no longer in basic terms Texas. considering the fact that Texas does not have a state earnings tax, state isn't a controversy.

Answer 3

You have to have lived in the house for 3 out of the previous 5 years. You can contact a tax preparer such as H&R Block and they will give you the information.

Answer 4

You have to live in the house at least 24 months.
When you sell it, you can't make more than $125,000 if you're single, ($250,000 if married) PROFIT before you pay any capital gains tax.
You can do this repeatedly as long as the 2 yrs residence and profit guidelines are followed.

Answer 5

Listen to ninasgram - that's the right info. The first two responders are incorrect - it's two years, not three; and the exempt amount is $250K if single, $500K if married.