I bought a home six months ago and we are looking ...
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I bought a home six months ago and we are looking to sell that home and purchase a new home. The orig purchase, sell and new purchase are taking place in the same year.

 
2 Replies
Level 15

I bought a home six months ago and we are looking to sell that home and purchase a new home. The orig purchase, sell and new purchase are taking place in the same year.

You did not ask a question.  Do you have one?  If you are asking about capital gains--you will be subject to tax since you have not owned or lived in the home long enough to meet the criteria to exclude any of the gain.  And purchasing another home is not relevant.   The rule that allowed you to exclude the gain if you purchased another home ended in 1997.

 

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.**
Anonymous
Not applicable

I bought a home six months ago and we are looking to sell that home and purchase a new home. The orig purchase, sell and new purchase are taking place in the same year.

since you have not lived in and owed the first home purchased for at least 2 years, any gain will be taxable unless you qualify for a partial exemption by meeting one of the three exceptions

1) change in place of employment

2) health

3)  to the extent provided in regulations, unforeseen circumstances.

 

 

if you want more info about any of the exceptions post back in this thread.  

also see IRS pub 523

https://www.irs.gov/pub/irs-pdf/p523.pdf

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