Capital Gains

[bae1266]

I live in Massachusetts and I am Single.  If I purchased my house for 263,000 and sell it for 1,000,000, how much will I owe in capital gains tax?

[rferreira 1]

Your question has me believe you sold your single family home that was your primary residence for two of the last five years.  With that, you are exempt from paying capital gains tax on the first $250,000.00 in profit.  Thus, you sold it for $1,000,000.00, minus your purchase price of $263,000.00 gives you a gains of $737,000.00.  The first $250,000.00 is exempt, so your taxable capital gain is $487,000.00 ($737,000.00 - $250,00.00).