Do I have to pay income tax on the profit from selling my home? I owned it for one year.?

Question

I've purchased another home for more than what I received in the sell of the old home.

Answer 1

Yes, you'll need to pay tax on the gain. If you owned it for one year or less, it's taxed at your marginal rate. If you owned it for more than 1 year, it's taxed at the lower long-term capital gains rate.

The old rollover replacement rule was discarded about 10 years ago when the current $250,000 or $500,000 exclusions were enacted. You cannot defer the gain on the sale of the home; you must pay it in the year you sold it.

Answer 2

You will have to pay capital gains tax (15%) on the sale of your house. The IRS code states you must own your home for at least two years and habitate the house for 2 out of 5 years owned, In this case it doesnt matter if you bought your next home at a higher value thatn your previous home.

Answer 3

if you owned it as an individual and sold it for 250,000 or less then you have no taxable liability. If you invested the profits or the excess of 250,000 into a new purchase.. no tax liabiity.

If you were married, the taxable limit goes to 500,000 before you have a taxable event.