I need to learn about capital gains taxes

[Angela Smith]

Hubby and I are putting the finishing touches on our first investment purchase.  We bought it to be a rental.  However, we have learned from our realtor that we may be able to sell it for more than we realized.  Even so, it's a pittance compared to what many on here do, but it's pretty encouraging for us.

We purchased it for $63,500.  We have about $5k in materials and a whole lot of sweat!  Our realtor says it will sell for $85-88k.  We need to subtract 6% realtor fees and our $5k material cost.  That leaves us with a decent profit.

But, how do we know how much to set aside for capital gains taxes?  Will we be saying goodbye to our profit?

Btw, this home will rent for $800/month if we decide to hold it.  This is in Indianapolis.