Do I pay taxes if I sell my house and not put the profits into a new house? (property, law)

[Surfertx]

I'm planning to move and sell my house and not plan to buy another property for a year. Will I be owing capital gains taxes if I don't roll over the profit immediately into a new house?

[luv4horses]

If you are older, like me, you will not be aware that the rules changed in the 90's. Now you only pay capital gains if the amount of profit is more than 250K for a single owner or more than 500K for married. Each time you sell.
And you never roll the profit over into a new home. So every transaction is separate and not related to those before or after.

I got socked pretty bad by this when I last sold my long-owned farm and had to pay big capital gains. And prices have gone up so much that this leaves me with too little money to buy something else unless I dip into savings too.

[Surfertx]

Originally Posted by luv4horses

If you are older, like me, you will not be aware that the rules changed in the 90's. Now you only pay capital gains if the amount of profit is more than 250K for a single owner or more than 500K for married. Each time you sell.
And you never roll the profit over into a new home. So every transaction is separate and not related to those before or after.

I got socked pretty bad by this when I last sold my long-owned farm and had to pay big capital gains. And prices have gone up so much that this leaves me with too little money to buy something else unless I dip into savings too.

This is my first home, all new to me. Thank you for sharing the knowledge.

[JONOV]

Assuming you've been living in it, and your Gain (Sale Price-Cost Basis) is less than $250K ($500K if married) it should be exempt.

[jackmichigan]

Originally Posted by Surfertx

I'm planning to move and sell my house and not plan to buy another property for a year. Will I be owing capital gains taxes if I don't roll over the profit immediately into a new house?

That's a pretty old rule. As has been pointed out, if the house has been your primary residence for over two years, you can exclude up to $250K of the profit if single; $500K if married, filing jointly. If you've lived there for less than two years, the excluded amount can be prorated if you meet certain conditions (e.g. moving is job related, etc., and you meet the distance requirement).

[Lola The yorkie]

Originally Posted by Surfertx

This is my first home, all new to me. Thank you for sharing the knowledge.

Yes. The federal law changed in 96 or so...have argued with my youngest sister who moved back to OC in Dec from Md.....she was married then, divorced now..and rules most have forgotten...

I just found the thread where you said you are a Ca native! So returning home....explains your name..wondered where you were surfing in Tx?

BTW,,,,,please don’t say Cali....Southern Cal and Northern Cal are OK! Tho now we ORange County folks even use South County and North County as our population has exploded..

Did I also read you had lived in Irvine! We did for ten years..great family place, but we got too old...hubbys ex and kids grew up in Irvine, Know it well..

34 years ago we spent a year looking to move..I have terrible knees, so one story homes were in our future..We are 75 and almost 80 now...we are in a lovely area of Lemon Heights.Irvine is our view..
3000 sq ft one story...pool, half acre...yeah they don’t build homes like this anymore in OC..

We also have a home in the desert...LaQuinta area...guess we deserve it!

Two sons. Aged 52 and 49..4 grands..all girls..twins almost 20, a third almost 20 and junior in high school..
Olders are entering junior year of college...USC, Colorado Boulder and Columbia...hubby says must be their smart mothers..those his sons have done well...bank Vice President and lawyer, who works in SF for Homeland Security..

Hubby..Jack..spent his career in medical device industry, last 20 years as a CEO..

I got my masters at CalStateLong Beach

Enough

Rosemariebrown..my nieces call me Aunt Rosebud

[LifeIsGood01]

Originally Posted by Lola The yorkie

Yes. The federal law changed in 96 or so...have argued with my youngest sister who moved back to OC in Dec from Md.....she was married then, divorced now..and rules most have forgotten...

I just found the thread where you said you are a Ca native! So returning home....explains your name..wondered where you were surfing in Tx?

BTW,,,,,please don’t say Cali....Southern Cal and Northern Cal are OK! Tho now we ORange County folks even use South County and North County as our population has exploded..

Did I also read you had lived in Irvine! We did for ten years..great family place, but we got too old...hubbys ex and kids grew up in Irvine, Know it well..

34 years ago we spent a year looking to move..I have terrible knees, so one story homes were in our future..We are 75 and almost 80 now...we are in a lovely area of Lemon Heights.Irvine is our view..
3000 sq ft one story...pool, half acre...yeah they don’t build homes like this anymore in OC..

We also have a home in the desert...LaQuinta area...guess we deserve it!

Two sons. Aged 52 and 49..4 grands..all girls..twins almost 20, a third almost 20 and junior in high school..
Olders are entering junior year of college...USC, Colorado Boulder and Columbia...hubby says must be their smart mothers..those his sons have done well...bank Vice President and lawyer, who works in SF for Homeland Security..

Hubby..Jack..spent his career in medical device industry, last 20 years as a CEO..

I got my masters at CalStateLong Beach

Enough

Rosemariebrown..my nieces call me Aunt Rosebud

I call it what I want

https://www.youtube.com/watch?v=FdizL4on-Rc

[Lola The yorkie]

Originally Posted by LifeIsGood01

I call it what I want

https://www.youtube.com/watch?v=FdizL4on-Rc

I love LLCool J

The theory is that we know if you are a tourist!