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Level 1

I am selling my home i have lived in for 13 years in texas for 275000.00. I will be buying another smaller home. My wife and I are both over 65. Will I have to pay taxes

 
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Level 20

I am selling my home i have lived in for 13 years in texas for 275000.00. I will be buying another smaller home. My wife and I are both over 65. Will I have to pay taxes

No.  And age doesn't matter anymore.  Starting in May 1997…..For a primary home, if you owned and lived in your house for 2 out of the last 5 years on the date of sale when you sell you can exclude the gain up to $250,000 for single or 500,000 for married from tax. You can not take a loss on your tax return. The rule about rolling over the gain to the next house went out in May 1997.

 

You don't have to report it unless you get a 1099S from the closing.   But it shouldn't be taxable.

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Level 18

I am selling my home i have lived in for 13 years in texas for 275000.00. I will be buying another smaller home. My wife and I are both over 65. Will I have to pay taxes

for the $500,000 exclusion, the actual rules are that 1) either spouse must own the residence for 2 out of 5 years prior to sale and 2) both must use it as their principal residence for 2 out of 5 years prior to sale.

 

in your situation it probably wouldn't make any difference, since even if only you meet both tests, the $250,000 exclusion should eliminate any taxable gain.

 

i merely point this out because sometimes we're informed its married couples selling, but not that that one spouse fails the second test,