How much in capital gains tax will I be hit with if I sell my house for a $55k profit after 21 months of owning it?

[kkjordan23]

I bought my house 21 months ago for $275,000 and want to sell it for $330,000 and use the profits as a down payment on a larger home. Because I'm under 2 years of ownership, how much am I paying in capital gains tax?

I've seen a lot of exclusions out there but I'm not sure if I qualify for any of them... might be best to stay in the house for another 3 months.

[Hal_Al · Accepted solution]

Yes, waiting three months means none of it is taxable. 

If you sell sooner, you will be subject to long term capital gains, which are taxed at 0% or 15% (or some of each) depending on how much other income, you have. The fact that you are using the proceeds for a new house is not relevant. 

Try this tool https://turbotax.intuit.com/tax-tools/calculators/taxcaster/?s=1. Enter your regular income first to see the regular tax. Then add the sale to see the effect.

[TaxGuyBill]

Besides the direct 15% tax on the Capital Gain (plus State), it could affect several other things on your tax return, effectively costing you more than 15% (plus State).

[SweetieJean]

Will waiting until 24 months have passed keep you in 2017, or put you into 2018? Congress is likely to make major tax law changes.