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dleegrantjr
New Member

Federal and State Capital Gains tax on sale of primary home in KY

We just sold our primary residence of 15 years and bought another house. We made $150,000 on sale and immediately put $50,000 into purchase of new home. Closing cost deductions were $30,000, so our profit not invested presently is $70,000. We currently make less than $150,000 in income. What will be my tax implications for federal and state of KY?

 

Thanks for your help!

 

2 Replies
DoninGA
Level 15

Federal and State Capital Gains tax on sale of primary home in KY

If you sold your primary personal residence and you lived in and owned the home for at least two years in the five year period on the date of sale, you do not have to report the sale if your gains are less then the exclusion amounts of $250,000 if filing Single or $500,000 if filing Married Filing Jointly (and both lived in the home for two years).

If you had a gain greater then the exclusion amounts then you would have to report the sale. Also, if you received a Form 1099-S for the sale either with a gain or a loss, the sale has to be reported.

 

Gain or Loss equals Sales Price minus Sales Expenses minus Adjusted Basis (Purchase price plus the cost of any improvements prior to sale)

xmasbaby0
Level 15

Federal and State Capital Gains tax on sale of primary home in KY

Just so you know---or so that others reading this thread will know----investing your profit into buying another home has no relevance.  The law that allowed you to avoid capital gains tax on the sale of a home if you purchased another home with the gain was changed in 1997.

**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.**
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