Will I have to pay a big tax after a sale?

[David Soest]

I bought a house, owner finance for 40K last year.

I've been living in the house and redoing it with my own money.

I hope to sell it soon for 100K.

I'll need to pay off the owner finance so I hope to walk out with 60K.

If I take 40K of the 60K and buy another house and keep 20K in reserve to do the repairs, will I have to pay a tax on the 20K?