How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Stephen G. Your Own Question
Stephen G.
Stephen G., Financial Advisor
Category: Capital Gains and Losses
Satisfied Customers: 7197
Experience:  Senior Tax Expert; CPA/PFS(retired)Personal Financial Planner; Small Business & Professional Mergers & Acquisitions
Type Your Capital Gains and Losses Question Here...
Stephen G. is online now
A new question is answered every 9 seconds

I have just sold my home that I have lived in 1/2

Customer Question

Hi, I have just sold my home that I have lived in for 5 1/2 years. I will have a profit of $88K. I am moving from California to Pennsylvania and plan to use most of the money as down payment on a home there. My question is, do I have to pay a capital gain tax on the money and can I use the money to make improvements on the home ie. adding a garage, pool etc. Can I use the money to pay off credit cards, car loans, etd.
Jen S.
Esparto Ca.
Submitted: 2 years ago.
Category: Capital Gains and Losses
Expert:  Stephen G. replied 2 years ago.

Hello, my name is***** & I'll be helping you today. My goal is to give you a complete & accurate answer that you can understand. As long as you've owned and lived in the home as your principal residence for 2 out of the previous five years ending on the date of sale, you will qualify for the personal residence gain exclusion ($250.000 Single; $500,000 Married Filing Jointly).

There is no restriction as to what you do with the money.

Jen: Please remember to rate my response as that is the only way we receive credit for our work.

Thanks very much.