Have a Tax Question? Ask a Tax Expert
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.
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?
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.
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)
Hi, I wanted to check back to see if you posted more about the purchase.