Question about Capital gains

3 Replies

Hey BP family.

I’ve been living in current residence in Ma for the past 5 years. I recently made a an offer (a low ball offer that will be my first live in flip) and it got accepted.

My current residence is expected to make $100k after broker commission once it’s sold.

I’ve heard conflicting reports. Some say:

“Yes I’ll have to pay capital gains”, and you guessed it, others said “No you’ve been living there for the past 2 years so you’re all set.”

So can someone help me with my questions?

Thanks!

Originally posted by @George Tiglianidis:

Hey BP family.

I’ve been living in current residence in Ma for the past 5 years. I recently made a an offer (a low ball offer that will be my first live in flip) and it got accepted.

My current residence is expected to make $100k after broker commission once it’s sold.

I’ve heard conflicting reports. Some say:

“Yes I’ll have to pay capital gains”, and you guessed it, others said “No you’ve been living there for the past 2 years so you’re all set.”

So can someone help me with my questions?

Thanks!

 Google sec 121. If you own the house and lived there for the last two years, your 100k gain on the primary residence is not taxed.  

There are other requirements such as you should not have used this exclusion in the past two years as well. 

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