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

SP1725
SP1725 Member Posts: 1 Newcomer
edited December 2024 in Income

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?

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Answers

  • JulieS
    JulieS FreeTaxUSA Agent Posts: 14 Level 3

    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

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