Tax Info if You Sell Your Home Within the First Two Years
Anyone who owns a primary residence more than two years gets a great tax-free exclusion: single people get a $250,000 exclusion while married couples get $500,000. Lately, it is not hard to get that type of appreciation in the Steamboat market. But what if you have to sell before two years? Do you lose the entire deduction? It depends on several factors, like if your home is your residence or an investment, if you are moving because of a job transfer, and how far away you are moving. Consult your CPA to be sure, but here is the link to the IRS website to help you with the basics. http://www.irs.gov/taxtopics/tc701.html
Finally, don’t forget to check your loan paperwork to see if you have a prepayment penalty!
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