My family is looking into moving but the house we are looking to sell has been bought out from our parents and we have had owned it in our name for less than 1 year.
We have lived in this house for 12 years. I see there is a lot of different answers regarding capital gains and short gains.
I understand that we have to pay capital gains. What we gathered online, we would have to add the profit from the sale of the house to our income and get taxed at whatever rate that is. I believe it was like 34%.
We want to buy a new house but do not want to loose over 1/3 of our money to buy a new house. Especially if we have to add that to our income.
My question is, do we have to pay capital gains/short gains on the total profit of the house even if we buy a new house? Or can we buy a new house without paying capital gains/short gains.
Thank you.
