Can you tell me what my capital gains tax liability will be after the sale of my primary home and the purchase of a condo, bought at a much lower price?

[DoninGA]

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.

How you use the proceeds of the sale is not relevant.  The requirement to purchase another home at the same or higher price than the sale of the former home to defer the capital gains was removed from the tax code in 1997.

[Anonymous]

I will point out that if your married the occupancy requirements apply to both your spouse and you..  only one of you needs to satisfy the ownership requirement. 

[lagoonpond]

Thank you. Your answer covers exactly what I needed to know.