We sold our home and will need to pay a capital gains tax for the sale. Will there be a penalty if we had no withholdings for the amount of the gain?

[USM Professor]

My apologies for not being more explicit. The home we sold was our primary residence, which we lived in for 30 years. We do qualify for the $500,000 exclusion and capital gain would be on an estimated $100,000 to $300,000. We fall into the 15% tax rate for the capital gain. 

I have looked at a number of sources, including some IRS publications and major financial advisor websites but there is no definitive explanation about when and how we pay the funds we owe from the capital gains from the sale of our home - it only states we pay them for the year we sold the home (2025). Some state we need to pay quarterly withholding, but these do not say this is necessary for the gains on the sale of a home - just "capital gains." 

We are loath to pay penalties for falling short of the required withholding and we accept the necessity to "pay Caesar" what is due. 

Thank you for any insight you can provide. 

[Bsch4477]

Yes, capital gains on the sale of a home is treated as income and subject to withholding just as any other income.