topic I sold personal real estate for the first time. Income from the sale is going for upgrades to my primary residence. Do I owe capital gains tax? in Deductions & credits

I sold personal real estate for the first time. Income from the sale is going for upgrades to my primary residence. Do I owe capital gains tax?

oinerja — Mon, 28 Aug 2023 19:38:54 GMT

I have read that there are no capital gains taxes on the first sale where I sold the property for more than I paid. Is this true?

Re: I sold personal real estate for the first time. Income from the sale is going for upgrades to my primary residence. Do I owe capital gains tax?

Bsch4477 — Mon, 28 Aug 2023 19:41:28 GMT

No, it’s not true. You will have to pay capital gains.

Re: I sold personal real estate for the first time. Income from the sale is going for upgrades to my primary residence. Do I owe capital gains tax?

Carl — Mon, 28 Aug 2023 22:32:20 GMT

The laws changed over 20 years ago, in 1998 I think. Now-a-days, when you sell real estate at a gain, it doesn't matter what you do with the proceeds. The gain is still taxable income.

Re: I sold personal real estate for the first time. Income from the sale is going for upgrades to my primary residence. Do I owe capital gains tax?

VolvoGirl — Mon, 28 Aug 2023 22:36:42 GMT

Starting in May 1997, the new rule is.........For a primary home, if you owned and lived in your house for 2 out of the last 5 years on the date of sale when you sell you can exclude the gain up to $250,000 for single or 500,000 for married from tax. You can not take a loss on your tax return. The rule about rolling over the gain to the next house went out in May 1997.