Capital Gains

[laye5]

If I lived in my primary house for 1 year and 4 months and then sold it to buy another, do I have to pay capital gains tax in each of these scenarios and how much?

1. I take all the profit and used it as a down payment on the new house.

2. I use half of the profit as a down payment and the other half to pay off debts or for other purposes.

Details:

• House bought for $300,000

• Sold for $425,000

• Profit: $100,000 after paying the bank for the remaining balance of the loan, both seller and buyer agents, and all required taxes and fees.
  Thank you

[Bsch4477]

Your scenarios 1 and 2 are irrelevant. You pay capital gains on the difference between your original cost plus any capital improvements and your proceeds from the sale less commission and closing costs.