Capital gains

[cgeisler510]

We are selling our California house next month purchasing a new one in Nevada in August.  How can we minimize the taxes we pay on the gains and can the gains on the old house be applied to the new one?

[OpeA1]

Hello @cgeisler510 

You won't pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home. If you're Married Filing Jointly, you won't pay taxes on the first $500,000.

That income is free and clear as long as:

• You owned the home
• It was your main home for two years or more within the five years leading up to the sale
• You waited at least two years between selling your primary home and excluding your first $250,000 or $500,000 from taxes. In other words, you may buy and sell as many primary homes as you'd like, but you'll only get this tax benefit every two years.

If all the above, are true in your case, then you can apply the proceeds of your sale to the purchase of the new home in Nevada.

Thank you!