If I️ sell my home do I️ have to pay capital gains? Can I️ use the money to pay off some cc debt? Do I️ have to roll the proceeds from the sale into another property to avoid paying taxes?
I’ve never sold a house before so I️ don’t know what happens when you sell.
If it has been your primary residence 2 of the last 5 years you can make 250K if single or 500K if married tax free. There is no need to reinvest the money.
I️ bought the house in December 2015. We lived in it for a little over a year then we moved due to work and that point we put it up for rent.
Under that circumstance it would not be eligible for the 2 of 5 homestead. However, you do have tax benefits of depreciation as well as long term capital gains treatment.
@John Thedford Actually, If @Matt Chavez moves more than 50 miles for work he Can claim a portion of the exclusion. Living there for one year instead of two allows yo to claim 1/2 of the Max deduction (not just half your gain) which will likely cover his entire gain. Caution, the current tax reform proposed increases the time to 5 out of 8 years, which Could go into effect 12/31/17.
Any advice on the type of professional I️ could go and talk to in person about this situation? When we sell I’ll need someone to help me out with this process.
Thanks in advance.
Accountant, cpa or attorney that focuses on tax
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