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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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My daughter bought a modest condo (first home) about a year ago. She's done quite we

Customer Question

My daughter bought a modest condo (first home) about a year ago. She's done quite well with it as the value looks to have nearly doubled. She's now thinking she wants a bigger place. If she sells her current place and buys another place, is she subject to cap gains tax and, if so, is there anything she can do to avoid them? Again, just over one year of ownership and sheearns about $55k/year, if that matters.
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
Hi and welcome to our site!Yes - as long as she did not own and did not use the property as her primary residence at least two years - the gain realized on that sale will be taxable.For her advantage - because the property was owned more than a year - the gain will be classified as long term and will be taxed at reduced long term capital gain rate.With her income level - that will likely be mot more than 15% on teh federal level plus state income tax.
Expert:  Lev replied 1 year ago.
If you don't meet the eligibility test, you may still qualify for partial exclusion if you moved because of work, health, or an unforeseeable event. If she simply sells because she wants a bigger place - she woudl not qualify for the partial exclusion...Sorry if you expected differently.

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