Tax Tips: Do I pay taxes when I sell my house?
byFeb 20th 2008 12:00PM
If you've lived in your home less than two years and sell it for a profit, you still may not owe any taxes. It will depend on how long you lived there and your reason for selling.
If you've had a home office or used part of the house for rental or other business purposes, you will probably have to report a gain on that portion of the sale and pay taxes on it. But fear not, the portion of the house that was strictly for your personal living purposes will still qualify for an exclusion of profits from your tax returns.
All the details about the tax impact of selling your home can be found in IRS Publication 523.
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.