We lived in our home for less than two years and are selling it and building a new home. We will be profiting $45,000. Do we have to pay a capital gain tax since we did not live here for two or more years?
Yes, you will have to pay tax on the $45,000 gain from selling your home, since you lived in it for less than two years. If you have owned the home for more than one year, it will be a long-term gain, which is taxed at lower rates than ordinary income.
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