Hello stephaniemajor99,
Thank you for joining us today. As to your question, based on your numbers, you have a capital gain of $1,000,000. Given the very large increase in value of your primary residence, I assume you have lived there for a long enough period of time to qualify for the $500,000 exclusion for married couples. So, the lont-term capital gain on the sale of your home will be $500,000.
With that amount of gain, you are on the border of the 15%/20% capital gains tax. It will all depend on how much other income you have where if it is above $550k it will be 20%. And, yes, there will be a state impact. How much of an impact will depend on your state. As you progress through the TurboTax questions, you will be upgraded to whatever version is needed for the sale of your home. The only way to lessen the tax impact would be to take advantage of and max out any tax deferred vehicles available to you through your employer or your business if you are self-employed.
The purchase of your new condo has no taxable event until you sell it.
I hope that helps.
