capital gains tax

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mrdoninjax
mrdoninjax Member Posts: 1 Newcomer
in Filing my taxes

i lived in the home approx 18 months and then sold it. i am buying another home approx 4 months after selling. can i put the profits from the sale into the new home to avoid capital gains taxes?

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  • CoryF
    CoryF FreeTaxUSA Agent Posts: 65
    edited November 2023
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    Thank you for this question Mrdon.

    You are not able to apply the Capital Gain from one residence to another for Personal Use to avoid any capital gains tax. You must report the sale of your home on the tax return for the year of the sale.

    You may qualify for a personal home exclusion. See Federal Publication 523 page 6 for a Partial Exclusion of Gain. If the reason for moving included Work or Health related or for unforeseeable events, you may qualify for a portion of the exclusion of the Capital Gain from the sale of your personal home.

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