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Updated over 6 years ago,
Taxes on sale (again)
I need clarification of the tax expense related to a sale of a property that was my primary residence.
Let’s say I make $100k on a sale of my primary residents. Profit. This is after including all cost associated with the sale including construction and realtor fees. For ease let’s say I’m in the highest tax bracket. I’d like to know how much I would pay in taxes on the above in two situations. (Note in this situation I moved for no specific reason ie. didn’t give birth to triplets and didn’t get a new job in another state.
1. I lived in the house for 6 months then sold. How much do I owe in taxes. I didn’t roll into a new property
2. I lived in the house for 13 months then sold. How much do I owe on my $100k in profit?
3. Does it change if I roll the $100k in profit into my next property.
I realize there is the $250k tax free if I live in the house for 2 years. But I won’t be doing that.
Is it short term capital gains for situation 1 and long term for situation 2? Can I roll it into a new profit and postpone paying taxes?
Feel like this should be an easy question to answer but I can’t find a consistent concept.
Thank you,
Jon