Do i pay capital gains tax selling my house?
If you are married, the deduction is $500,000. Therefore, if your gain is less than the deduction, you will pay no tax, if it is more, than you pay the difference. If you have not lived in the property for 2 years, or if your property is an investment property, you will owe capital gains tax. You can do a 1031 exchange if the property is held for investment, but if it is your primary residence, you cannot do a 1031 exchange. I hope this has helped.
