Capital Gains Tax ?????

[worriedIL]

What is the name of your state? IL

If I were to sell my condo in less then a year of owning it, and it has appreciated approx 20%, do I have to pay capital gains tax, and if so about how much? Also, does the fact that i want to roll over that money into a new home help me at all?

 

[LdiJ]

What is the name of your state? IL

If I were to sell my condo in less then a year of owning it, and it has appreciated approx 20%, do I have to pay capital gains tax, and if so about how much? Also, does the fact that i want to roll over that money into a new home help me at all?

There are some reasons that allow you to have a partial (pro-rated) exclusion of gain if you sell a primary residence after less than 2 years of residency.

A job transfer, divorce, or specific types of hardship can be reasons.

If you don't fall under the catagories that allow a pro-rated exclusion, or if your gain is more than the pro-rated exclusion, then your capital gains rate depends on your overall income.

The fact that you want to roll the money into a new home is irrelevant.

You need to see a tax professional in your area.....and provide them with the full details.

 

[maryks]

You would pay cap gains on the increase. You can deduct certain expenses for repairs and etc, so keep your receipts. Also, there are ways to reinvest some of the $$ and shelter it... take out an IRA for $4000 for instance. If you pay your own health ins, check out health savings accts as well.

Do talk to a tax consultant ASAP