money from sale

Hi. We are thinking of selling our house in the near future. We have $10,000 - 15,000 equity in our home depending on what it actually sells for. My queston is - do we have to pay taxes on the profit if we decide to pay off debt with the money instead of putting it toward a new house. We are thinking of renting for a few years before buying another house. Thanks.

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by keanro:
Hi. We are thinking of selling our house in the near future. We have $10,000 - 15,000 equity in our home depending on what it actually sells for. My queston is - do we have to pay taxes on the profit if we decide to pay off debt with the money instead of putting it toward a new house. We are thinking of renting for a few years before buying another house. Thanks.<HR></BLOCKQUOTE>

That is not much since closing costs and sales commissions will offset the profit. The profit wil be taxed as capital gain but seek advice from a tax attorney or CPA.