Capital gains from selling house (5%, escrow, requirements, residence)

[191185]

Hello,

If I sell my house, and keep the profit, say $40,000 .... Do I have to pay capital gains on that ?

Is there still a one time deal where you don't have to, but only once in your life ?

[rrah]

Have you lived in the house 2 of the past 5 years? If so, you are exempt from capital gains up to $250,000 for a single and $500,000 for a couple.

The 1 time rule is no longer true.

[reed303]

In addition to RRAH's info, some additional details to know at this IRS link.

https://www.irs.gov/taxtopics/tc701.html

[191185]

Originally Posted by rrah

Have you lived in the house 2 of the past 5 years? If so, you are exempt from capital gains up to $250,000 for a single and $500,000 for a couple.

The 1 time rule is no longer true.

Awesome, thank you . Yes I have lived in there the past 7 years, looking to sell, but only put 5% down on next house.

[projectmaximus]

Also if you made any capital improvements that would raise the basis and lower your capital gains. Again, won't matter since it was your primary residence but just saying.

[Lovehound]

If your capital gains are under either of the exclusions (depending on marriage status) then you just blow past "go" and there isn't even any paperwork other than filling out the form during escrow.

I sold my first house that way, CG was just under $250K and I met the residency requirements, so closing escrow was the last I ever heard of it.