Capitol Gains Tax!
I bought a house 10 months ago. I am in the military, and am being transferred. I will have owned my house less than two years. I stand to make about 35,000 on the house. If I re invest the earnings, do I have to pay capitol gains? Is there any way around it?
Just sell the house. Because you have to sell due to a job transfer, your capital gains exclusion will be pro-rated for the actual time you meet the two year rules.
Ten months should be plenty of time to exclude $35K from capital gains taxes. You do not have to reinvest the profits to qualify for the capital gains exclusion.
Consult your personal tax advisor for specific details -- perhaps someone in the base legal assistance office.