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Capital gains tax

My wife and I live in NJ and plan on selling our home this year. In doing our calculations, we may end up with $150,000 from the sale after paying our fees. Would that amount be subject to a capital gains tax when we file our taxes in 2022 (both federal and state)? 

3 Replies
Level 15

Capital gains tax

If you sold your primary personal residence and you lived in and owned the home for at least two years in the five year period on the date of sale, you do not have to report the sale if your gains are less then the exclusion amounts of $250,000 if filing Single or $500,000 if filing Married Filing Jointly (and both lived in the home for two years).

If you had a gain greater then the exclusion amounts then you would have to report the sale. Also, if you received a Form 1099-S for the sale either with a gain or a loss, the sale has to be reported.

Level 15

Capital gains tax

your gain is not the proceeds from the sale. it's the sales price less selling costs less your basis in the property. the mortgage does not enter into the computation of the gain.

Level 15

Capital gains tax

NJ Income Tax - Sale of a Residence

If you sold your primary residence, you may qualify to exclude all or part of the gain from your income. Your capital gain is calculated the same way as it is for federal purposes. Any amount that is taxable for federal purposes is taxable for New Jersey purposes. Single filers can qualify to exclude up to $250,000. Joint filers can qualify to exclude up to $500,000. This is true regardless of age, as long as you owned and lived in the residence for 2 of the 5 years prior to the sale.

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