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hesspj1
New Member

If I sold my home and made 83k capital gains profit, and my taxable joint income filing married is around 65k for 2021, how much should I set aside to pay CG taxes?

 
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4 Replies
Hal_Al
Level 15

If I sold my home and made 83k capital gains profit, and my taxable joint income filing married is around 65k for 2021, how much should I set aside to pay CG taxes?

None.  Most home sales are tax free. 

 

The capital gain on the sale of your primary home is not taxable (up to $250K, $500K married). To be eligible you must have lived in and owned the home for at least 2 out of the 5 year prior to sale. You do not even need to report it on your tax return, unless you got a tax document, usually a 1099-S. The 1099-S may have been included in your closing documents, instead of arriving in the mail, in Jan. or Feb. of the following year.

hesspj1
New Member

If I sold my home and made 83k capital gains profit, and my taxable joint income filing married is around 65k for 2021, how much should I set aside to pay CG taxes?

Apologies, I should also note in extras that we are military, only lived in the house for 1 year 4 months, so to my understanding we didn't qualify for the minimum 2 year requirement. @Hal_Al 

If I sold my home and made 83k capital gains profit, and my taxable joint income filing married is around 65k for 2021, how much should I set aside to pay CG taxes?

If you moved due to orders then you can prorate the exclusion so the amount you profited  would be tax free. 

 

 

Hal_Al
Level 15

If I sold my home and made 83k capital gains profit, and my taxable joint income filing married is around 65k for 2021, how much should I set aside to pay CG taxes?

A job change, of over 50 miles,  including military orders, means you do not have to meet the full 2 year rule,  to get the capital gain exclusion on the sale of your primary home. But, the maximum exclusion is reduced. In your case, you are limited to 16/24 x $500,000 = $333,333.  Since you total gain ($65K) is less than that, none of it will be taxable. 

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