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Level 15
Level 15

Deductions & credits

If you will owe a significant amount of tax on the profit from selling the home, you should make a payment now to avoid penalties. If you wait until April you will owe a penalty for late payment.

How much tax you will have to pay, or whether you will have to pay any tax at all, depends on your other income and other factors. You can use TaxCaster, at the link below, to estimate your tax. It's still set up for 2016, but the results will be very close for 2017.

Exactly how long you owned (not lived in) the house could make a big difference. If you owned it for a year or less, your profit is short-term gain. If you owned it for more than a year, it's long-term gain, which is taxed at lower rates. If your other income is low enough, some or all of the long-term gain might be taxed at 0%, in other words, not taxed at all.

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