I have an out of state job opportunity with flexible start date. I’d like to move sooner rather than later, but I haven’t been in my current house 2 years until Feb 1. Will I really take that big of a hit on taxes if I sell before 2 years? I won’t net too much after realtor fees and take away the appx $6k in upgrades I’ve put in. Less than $20k probably.

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Posted by LSUtigerME

Walker, LA

Member since Oct 2012

3795 posts

Posted on 8/11/19 at 9:16 pm to Rollwave034

It will be treated as long term capital gains, so 0/15/20% tax (based on income, presumably 15%) on the profit, which can include deductions for the cost of improvements.

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Posted by Tigerbait337

Louisiana

Member since Aug 2008

20535 posts

Posted on 8/12/19 at 8:08 pm to Rollwave034

Just set aside 3k of the proceeds for taxes at the end of the year. Easy.

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Posted by baldona

Florida

Member since Feb 2016

20444 posts

Posted on 8/12/19 at 8:52 pm to Rollwave034

Yah I don’t think your gain is substantial enough to worry about. Do what you need to do in life and don’t worry about the house.

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Posted by reb13

Member since May 2010

10905 posts

Posted on 8/12/19 at 10:01 pm to Rollwave034

You get coverage on a pro rata basis so if you’re married and you are at 1.5 years you get 75% of the $500k exemption. So you’re fine.

This post was edited on 8/12/19 at 10:02 pm

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Posted by LSUFanHouston

NOLA

Member since Jul 2009

37088 posts

Posted on 8/13/19 at 7:49 am to Rollwave034

If you are moving more than 50 miles for the new job, you can get a portion of the exclusion, which given your numbers, would be enough to cover the gain.

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