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Originally Posted by cindy0721  If I was to sell my home before the 2 year mark , will the IRS tax me for the sale? We bought our home in Nov 2006 so it wont be 2 years until then....  |
Are you purchasing another more expensive house? If so, it doesn't matter.
If you are not buying another house...in order to use your exemption ($250,000 single/$500,000 married)...you have to have lived in it 2 years.
Your basis for your home is the purchase price then you can add improvements you made (not repairs and general maintenance...like roofs)...then you would subtract that amount from your selling price. The difference between your selling price and the amount above is the amount the capital gains tax would be figured. That used to be about 15%.