Down payment

i am buying a home this month. i will be making the down payment by selling stock options or by selling actuall stock. if i sell stock and use the money as a downpayment on a house, do i have to pay capital gains tax? what about stock options and income tax?

California

If you have a gain on the sale of the stock or stock options, the gain would be taxable whether or not you purchase property with the proceeds. The purchase of the property has nothing to do with the taxability of gain.

To find out how to handle transactions in stock options, see Publication 525 (2001) TAXABLE AND NONTAXABLE INCOME, which you can download for free at the IRS site at: http://www.irs.ustreas.gov/forms_pubs/index.html