Do you have to claim profits made from the sale of a house if you planned on moving into it as a primary residence and your current home didn't sell, so you had to sell the new one?

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mg7475

ANSWERS: 1

This Used To Be Me

I believe you will have to pay federal (and possibly state) Capital Gains tax. There is a list of exemptions and formulas available on www.fool.com (The Motley Fool). But exemptions have to be proven, and how do you prove a sincere desire or intention to move in to a house? Your situation sounds like a windfall to me. You are lucky you made a profit out of what could have been a very bad situation.

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