Hi. I plan on relocating to another state next year. I have been living in this home for a little over 5 years. When I sell the home, do I have to pay taxes on the sale. Are the taxes paid on the difference between the purchase price and sale price? Is there an amount exempt from taxes? Do I pay federal or state taxes on the sale? If there are state taxes, which state do I pay to? (I will be living in the state where the home is for about 2 months next year an in new state for about 10 months.)
