$150,000 profit - what about taxes?

[Charles Lewis]

So, long story short, I have a piece of vacant land I'm thinking of selling. It's right next door to my residence, so it counts as part of my homestead. I've only owned it for a year, though, so if I sell now I'll incur long-term capital gains. If I sell after two years, I'll pay no tax on it due to the principal residence exemption.

My question is this - if my salary is $60,000, such that I'm in the 15% tax bracket and, consequently, pay 0% on capital gains, will the whole $150,000 long-term gain be taxed at 0% if I sell right now instead of waiting two years and getting the principal residence exemption?

[Jay Hinrichs]

@Charles Lewis

  I don't think that will fly for your personal residence exemption... you can't split off part of your residence and sell it.. you need to sell the house also.. its were you reside that is the test.