Hi @kmm22
You are only eligible to exclude the gain on your primary residence if you lived in the home for 24 months (does not have to be consecutive). It sounds from your question that you only owned the home for a year so you would not be eligible for the gain exclusion on the sale of this home.
As a result, you will pay taxes on any gain when you sell the home. You will not need to recapture any of the gain from the previous sale.
Be sure to keep good records of your selling expenses or any costs to prep the home for sale. When you prepare your tax return, have your Final Sales Agreement as certain selling expenses can reduce your gain. Same for your original purchase agreement when you were the buyer -- you can adjust your basis in the property by certain expenses you paid when you purchased the home.
We have tax experts that can help identify deductible expenses if you need help when preparing your return.
Thank you!
