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When you sell your condo in Florida, you'll need to consider federal capital gains taxes. Here are the key points:

Capital Gains Tax Rules:

1. Short-Term vs. Long-Term: If you sell the property within a year of purchasing it, the profit is considered a short-term capital gain and is taxed at your ordinary income tax rate. If you've owned the property for more than a year, it's considered a long-term capital gain, which typically has lower tax rates.

2. Exclusions for Primary Residence: If the property was your primary residence for at least two of the five years before the sale, you can exclude up to $250,000 of the gain if you're single, or up to $500,000 if you're married and filing jointly.

You can avoid or reduce capital gains if you utilize:

1. 1031 Exchange: This allows you to defer paying capital gains taxes by reinvesting the proceeds from the sale into a similar type of property.

2. Holding the Property for Longer: Holding the property for more than a year qualifies you for the lower long-term capital gains tax rate.

3. Offsetting Gains with Losses: You can use losses from other investments to offset your capital gains.

Current Capital Gains Tax Rates:

• Long-Term Capital Gains Tax Rates: These range from 0% to 20%, depending on your income level. For example, if you're a single filer earning up to $40,000, you may qualify for a 0% rate.

• Short-Term Capital Gains Tax Rates: These are taxed at your ordinary income tax rate, which can be as high as 37%.

Goodluck to you!