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Tax on sale of house

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What is the name of your state?Arizona: I posted this on the real estate board and just realized I should have posted it here!

I'm thinking about selling my house just 1 year after purchase and am trying to get an idea of what my CG tax will be since I'd be selling before the 2 year exemption. Can anyone tell me if I'm on the right track on figuring this according to what I've learned so far:
1) Take the selling price of the home, deduct selling expenses such as realtor commissions & advertising fees, any legal fees, points I may agree to pay for the buyer, title & recording fees, and any other IRS approved fees like home repairs. 2) Next, deduct the amount I still owe on the house. 3) The remainder is what I pay taxes on? Is the tax a certain percentage for everyone - like 15% - or does it depend on what tax bracket I fall in?

Again, I'm just trying to get an idea of what my tax may be if I sell before waiting another year to be exempt altogether. Thanks for your help!


Senior Member
The amount you still owe on the house is irrelevant.

It's all about selling price minus (purchase price + selling expenses/improvements to the home).


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