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?

posted

Connect with an expert

1 Best answer

Accepted Solutions

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

1 Reply

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

Still have questions?