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jefferskc
New Member

I own a home with sibling we have lived in for 8yr. Pd $124K. If sell house for $200K. $80K profit. Do we each have to buy a house of $200K so not pay capital gains tax?

 
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TomYoung
Level 13

I own a home with sibling we have lived in for 8yr. Pd $124K. If sell house for $200K. $80K profit. Do we each have to buy a house of $200K so not pay capital gains tax?

There is no longer any "roll over" provision in the income tax code that allows you to defer capital gain on the sale of your home; that was abandoned long ago.  Instead you are now allowed, if you are single,  to exclude capital gains of up to $250,000 when you sell your home, paying no capital gains tax.

https://www.irs.gov/taxtopics/tc701


Tom Young


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TomYoung
Level 13

I own a home with sibling we have lived in for 8yr. Pd $124K. If sell house for $200K. $80K profit. Do we each have to buy a house of $200K so not pay capital gains tax?

There is no longer any "roll over" provision in the income tax code that allows you to defer capital gain on the sale of your home; that was abandoned long ago.  Instead you are now allowed, if you are single,  to exclude capital gains of up to $250,000 when you sell your home, paying no capital gains tax.

https://www.irs.gov/taxtopics/tc701


Tom Young


View solution in original post

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