Capital gains tax?

Question

Sold my primary residence in 2006 after living in it for 1.5 years. Made money...what is the tax rate? can i add the cost of improvements i made to my basis? thanks...also, how would irs even know about this?

Answer 1

since you held it for over a year, the long-term capital tax rate of 15% would apply. any improvements you made to the house would add to your basis in order to help reduce the gain. the irs does not have record of your cost basis, only the sales proceeds.

Answer 2

should be around 15%.