topic I do not have the ability to pay the entire amount of capital gains tax in one year may I spread it out over two years? in Investors & landlords

I do not have the ability to pay the entire amount of capital gains tax in one year may I spread it out over two years?

susan_ady-hotmai — Tue, 10 Mar 2026 07:24:41 GMT

I calculate that I may owe $48,000 in capital gain tax after the sale of my home, after applying the $250,000 exclusion- even though I reinvested all the proceeds into a new home, is that correct?

Re: I do not have the ability to pay the entire amount of capital gains tax in one year may I spread it out over two years?

Bsch4477 — Sat, 10 Dec 2022 20:29:07 GMT

Remember that you can add any capital improvements made to your home’s cost basis. But, yes, you would have to pay any capital gain (usually taxed at 15%) and can’t spread the payment over 2 years. Your purchase of another home is not relevant.

Re: I do not have the ability to pay the entire amount of capital gains tax in one year may I spread it out over two years?

NCperson — Sun, 11 Dec 2022 16:25:47 GMT

@susan_ady-hotmai - how did you calculate the $48,000?

should be what sold the house for LESS the selling expenses (don't forget the commission) LESS what you purchased the house for originally LESS whatever you spent on improvements during your ownership of the home.

Re: I do not have the ability to pay the entire amount of capital gains tax in one year may I spread it out over two years?

Critter-3 — Mon, 12 Dec 2022 01:22:56 GMT

If you cannot pay the tax bill in full you can pay in installments but you cannot split reporting the sale onto more than one tax year returns.