topic If I sell my house and buy another home at an equal or greater value, do I still have to pay a capital gains tax? in Deductions & credits

If I sell my house and buy another home at an equal or greater value, do I still have to pay a capital gains tax?

MTV — Tue, 24 Feb 2026 07:10:59 GMT

If I sell my house and buy another home at an equal or greater value, do I still have to pay a capital gains tax?

Re: If I sell my house and buy another home at an equal or greater value, do I still have to pay a capital gains tax?

Bsch4477 — Tue, 08 Aug 2023 17:05:09 GMT

The transactions are independent of each other. You might qualify for the capital gain home owners exclusion when you sell your home.

Re: If I sell my house and buy another home at an equal or greater value, do I still have to pay a capital gains tax?

xmasbaby0 — Tue, 08 Aug 2023 17:14:01 GMT

SALE OF HOUSE

If your gain was more than $250,000 filing Single, or more than $500,000 filing Married Filing Jointly the sale must be reported on your tax return. Whether you re-invested the gain in to another house is irrelevant. If you have a Form 1099-S go to Federal>Wages and Income>Less Common Income>Sale of Home (gain or loss)

If you owned and lived in the home as your primary residence for at least 2 of the last 5 years on the date of the sale, you do not have to report the home sale if the gain is less than $250K filing Single, or less than $500K filing Married Filing Jointly (and you both owned and lived in the home for at least 2 years).

If you are using online TT, you need Premier or Self-Employed software to report the 1099-S

Re: If I sell my house and buy another home at an equal or greater value, do I still have to pay a capital gains tax?

Opus 17 — Tue, 08 Aug 2023 17:15:29 GMT

The rule that you could postpone your gain by buying a more expensive home was phased out in 1997. Now, each transaction stands alone. If you lived in the home at least two years of the past 5 years and owned it at least 2 years, you qualify to exclude the first $250,000 of gain (or $500,000 if married filing jointly). Any gain over that is a taxable capital gain. If you owned and lived in the home less than 2 years, you might qualify for a partial gain depending on the circumstances of why you decided to sell.