I sold my condo, will I need to pay capital gains tax?

SP1725

I sold my condo in Michigan 48823. I bought it in August 2022 for 160k and sold on October 2024 for 194k. In addition of county/ state transfer tax will I need taxed for capital gain? If yes, is there any investment alternatives I can use to avoid paying taxes?

JulieS

Hi SP1725,

Thank you for joining our live event with your question.

If you have lived in and owned your main home for 2 out of the past 5 years, then you may qualify for the home sale exclusion. The home sale exclusion allows you to exclude up to $250,000 (Single) or $500,000 (Married Filing Jointly) of the gain from the sale of your main home.

Please see the following IRS links for further details and requirements to qualify for the exclusion:

https://www.irs.gov/taxtopics/tc701

https://www.irs.gov/forms-pubs/about-publication-523