Are Capital Gains Taxes Pro-Rated

I lived in my first home for 18 months. I sold it and made about 100k, which I then used to buy another home.

Do I have to pay the full capital gains taxes on the 100k? or is it pro-rated by 75% (the time I did live there)?

Thanks,
Todd

Comments(7)

  • NewKidinTown23rd March, 2005

    Tell us why you had to sell your house after only 18 months of occupancy?

    Did you get an offer that was too good to refuse?
    [addsig]

  • thechangingtable3rd March, 2005

    if you moved for a reason like job change, health reasons, divorce, etc, you may be able to take the prorated gain. Check with your accountant.

  • hoos363rd March, 2005

    There was no specific reason other than I realized I could make a lot of money.

    I did end up buying the new place with my future wife, so I guess that could be a reason...not sure if Uncle Sam is going to agree with that one though :-D

    Hope that helps and you all can give some more insight.

    Thanks for the responses...looking forward to being a great contributor to this forum

    TB

  • jon_realtor4th March, 2005

    Yep!
    I agree with the guy above me
    you have to live in the property for at least 2 years in order to claim Capital Gains Tax. Go to the IRS or see your accountant.
    good luck

  • hoos364th March, 2005

    Thanks DontAskWhy...I just printed out the PUB 523 and it looks like I am out of luck unless my accountant can pull a fast one.

    Unfortunately the deal on our new place was too good of a deal to wait the extra 6 months.

    Thanks Again

  • cataman4th March, 2005

    Not to mention sleeping at night. Is there a good book that you can recommend that identified legitimate ways to maximize deductions?

  • cataman4th March, 2005

    The value of this site never ceases to amaze me. Thank you.

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