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Ask Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13314
Experience:  15years with H & R Block. Divisional leader, Instructor
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Sure! I am selling a personal primary residence I have owned

Customer Question

Sure! I am selling a personal primary residence I have owned less than 24 months. I am putting the money into a new primary residence property. Will I be subject to 15% capital gains tax?
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: Basis of my sale is estimated at 30K profit. After I factor in PP minus improvements.
JA: Is there anything else important you think the Accountant should know?
Customer: State is GA and Ownership is 16 months out of 24- long term capital gain.
Submitted: 1 month ago.
Category: Tax
Expert:  Robin D. replied 1 month ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Expert:  Robin D. replied 1 month ago.

The purchase of a new home is not factored into your tax situation.

If you had lived in the home for the 2 year time then you could exclude up to $250k of the gain if single. Depending on your reason for moving you may still be able to exclude a portion of the allowed amount.

Why are you (or have you) left the old home?

Customer: replied 1 month ago.
I have lived in the new home less than the 2 year time frame. Only 16 months. Moving to buy a bigger property.
Expert:  Robin D. replied 1 month ago.

You say bigger property needed is reason, was there a specific reason you wanted or needed the larger home?

I am not just being nosey, it may assist you.

Expert:  Robin D. replied 1 month ago.

If not then you have held the property long term (longer than 1 year) so you can use the lower capital gains rate and the gain is not taxed at the same rate as your regular income.

The 2 years only relates to being able to exclude gain not the capital gains tax rules for long term held and lower capital gains rates.

Please let me know if you need clarification. If you do not then a positive 5 star rating is appreciated so I get credit for the response. (look for the STARS or SMILEY FACES)

Expert:  Robin D. replied 1 month ago.

Hi, I wanted to check back to see if you posted more about the purchase.