It's time to put this topic to rest!

[Wilder Fuentes]

Howdy BP Community,

This question has been circling in my mind, and it's time to get answers.

I recently read an article in a professional publication for realtors that indicated that when one sells a secondary home, the owner will be hit with a tax bill on the profit of the sell. In his case, what is considered profit?

1) The difference between the original purchase price and the sell price? OR

2) The equity in the house + any amount over market value?

Essentially, I am curious to find out if my downpayment, which truly appears as if I have equity in the house, will in turn be taxed upon resell. That would be tragic!

I can't wait to read all the response from experts like YOU!

Thank you for sharing your knowledge and expertise.