We sold a home in Florida in May 2019 for $400,000 and purchased a home elsewhere for $300,000. We made various improvements on the Florida home. Do we need to pay "capital gain tax" on this?
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1 Replies
ReginaM
Expert Alumni
Jan 23, 2020 8:16:59 AM
No, you do not need to pay capital gain taxes on the sale of your home provided you qualify for an exclusion:
if you sold your personal primary residence,
you lived in and owned the home for at least two years of the five year period on the date of sale,
and your gains are less than the exclusion amounts of $250,000 if filing Single or $500,000 if filing Married Filing Jointly (and both lived in and owned the home for two years).
For more information see IRS Publication 523 on the Sale of your home.