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Alexander Haraczka
Alexander Haraczka,
Category: Capital Gains and Losses
Satisfied Customers: 23
Experience:  Supervisor at Cummings, Lamont & McNamee, PA
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Monden. My question is: Do I have to pay capital gain tax if

Customer Question

Customer: My name is Tommie ***** ***** Monden. My question is: Do I have to pay capital gain tax if I sell my home. I am 85 and a widow.
JA: Thanks. Can you give me any more details about your issue?
Customer: I am wanting to downsize. My home that I have lived in for 23 years is worth around $200,000. I paid about half that much for it. Would I have to pay tax on capital gain??
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Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  Alexander Haraczka replied 1 year ago.

Good afternoon and thank you for posing your question regarding the sale of your home. My name is Alexander; I'm an EA and am happy to assist you with this issue.

As long as the following is true, you will be able to exclude $250,000 of capital gain income from your taxable income, under IRC Sec. 121:

1. The house was your principal residence for at least two of the past five years,

2. You did not rent the house out to others (it doesn't sound like you did, but if you rented it out, there may be some recapture of depreciation), and

3. You haven't used the exclusion in the past two years.

Given the information you've provided, you should be able to exclude any gain (appears to be about $100,000) from taxation.

If any part of my answer was unclear, please let me know and I will clarify. If you feel you've received a prompt and professional response to your question, please be sure to rate me as soon as you're able. Thank you,

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