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Subject:  Re: Sold House with $100K Cap Gain Date:  10/17/2001  7:42 AM
Author:  pmarti Number:  54667 of 127549

In 1994 I purchased a house for $125,000. Yesterday, I sold the house for $231,000. This means I have about a $106,000 capital gain that I now have to pay taxes on.

Before we get carried away, let's make sure you have a problem. Did either you or your wife use this house as your primary residence for 2 of the last 5 years? If so, none of the gain will be taxable; in fact, you don't even have to report the sale. See IRS Publication 523.

If you still think you have a problem, let us know.

Phil Marti
VITA Volunteer
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