Capital Gains on the sale of a home.?

Question

I am considering selling my home but had a question about capital gains tax. I purchased and have lived in the home since last spring (about a year) and I want to sell it before the 2 year mark. I expect to make a gain of $30-$60k on the home and plan on immediately using that profit as a down payment on a new primary residence. Will that gain still be taxed if it is used entirely as a downpayment. How long do I have to buy a new home before having to pay taxes?

Answer 1

You may still be able to exclude part of the gain. See the topics, Ownership and Use Tests and Reduced Maximum Exclusion.