Capital Gain Tax on Primary Sale

[Coretta I.]

I am thinking of listing my primary home that I purchased in June 2015 (1 year and 1 month ago). I've remodeled the kitchen, master bathroom, and half bathroom since l purchased (about $15k). If I sale my home for $255k and pay about 20k in fees associated with selling and still owe 144k on it, will I have to pay capital gains tax? Are their any other CONS (e.g. potential costs or issues) associated with the sale of my home that I have not considered?

[Dave Foster]

@Coretta I., The amount you owe doesn't determine what your gain is.  You need to take your tax basis (what you paid for it plus those improvements) and subtract that from what your net sale will be.  The difference will be your gain or loss. 

Because this is your primary residence the 1031 exchange is not available to you.  1031 exchanges are only for investment property. 

But wait, are you doing bad math?  If you bought the property and moved into it June of 2015 you've actually been residing in it for 2 years and one month.  If so then you can sell it and take the first $250K ($500K if married) in profit tax free. Since your net sale is going to be less than $250 you should not have any tax bill at all.