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Would I have to pay capital gains on my house if I sold it before two years of owning it and buy a fifth wheel to move into.

 
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4 Replies

Would I have to pay capital gains on my house if I sold it before two years of owning it and buy a fifth wheel to move into.

Where you live after you sell the house, or what you do with the money from selling the house is irrelevant.

 

SALE OF HOUSE

 

If your gain was more than  $250,000 filing Single, or more than $500,000 filing Married Filing Jointly the sale must be reported on your tax return.  Whether you re-invested the gain in to another house is irrelevant.  If you  have a Form 1099-S go to Federal>Wages and Income>Less Common Income>Sale of Home (gain or loss)

If you owned and lived in the home as your primary residence for at least 2 of the last 5 years on the date of the sale, you do not have to report the home sale if the gain is less than $250K filing Single, or less than $500K filing Married Filing Jointly (and you both owned and lived in the home for at least 2 years).

  • If you are using online TT, you need Premier or Self-Employed software to report the 1099-S
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Would I have to pay capital gains on my house if I sold it before two years of owning it and buy a fifth wheel to move into.

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Carl
Level 15

Would I have to pay capital gains on my house if I sold it before two years of owning it and buy a fifth wheel to move into.

How long you owned the house isn't the deciding factor on the capital gains tax exclusion. What matters is how long it was your primary residence. You could have owned the house for 3 years. But if it was not your primary residence for at least 2 of those years (730 days) then all the gain on the sale is taxable.

 

Would I have to pay capital gains on my house if I sold it before two years of owning it and buy a fifth wheel to move into.

You must have owned and lived in the home as your primary residence for at least 2 of the last 5 years on the date of the sale. So, if for example, you lived in it for 2 years (1 year as a renter) but only owned it for one, then you do not qualify.

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