Do you pay income tax when you sell your house? Generally, you may not have to pay income tax on the profit from selling your primary residence, thanks to tax laws that allow you to exclude a significant portion of the gain, and income-partners.net can help you navigate these rules. However, the rules can be complex, so understanding the qualifications, potential exceptions, and reporting requirements is essential for anyone considering selling their home and seeking partnership opportunities. This knowledge ensures you’re well-prepared to optimize your financial outcomes and explore profitable collaborations.
1. Understanding Capital Gains and Home Sales
Do you understand how capital gains impact your home sale and potential tax obligations? Yes, understanding how capital gains impact your home sale is vital for navigating tax obligations. When you sell your house for more than you originally paid, the profit is considered a capital gain. The IRS allows you to exclude a certain amount of this gain from your income, providing a significant tax benefit.
- Capital Gains Explained: Capital gains are the profits you realize from selling an asset, such as a house, for more than its original purchase price (plus any improvements).
- Tax Implications: Capital gains are subject to tax, but the rate depends on how long you held the asset. If you owned the home for more than a year, the gains are taxed at the long-term capital gains rates, which are generally lower than ordinary income tax rates.
- Exclusion Amounts: The IRS allows single filers to exclude up to $250,000 of capital gains from the sale of their primary residence, while married couples filing jointly can exclude up to $500,000. This exclusion can significantly reduce or even eliminate your tax liability.
For example, consider a homeowner who bought a house for $200,000 and sells it for $500,000. The capital gain is $300,000. If they are single, they can exclude $250,000, leaving $50,000 subject to capital gains tax. If they are married filing jointly, they can exclude the entire $300,000, owing no tax on the sale.
2. Ownership and Use Tests for Tax Exclusion
Do I need to meet specific requirements to qualify for the home sale tax exclusion? Yes, you need to meet specific ownership and use tests to qualify for the home sale tax exclusion. The IRS requires that you must have owned and used the home as your primary residence for at least two out of the five years leading up to the sale.
- Ownership Test: You must have owned the home for at least 24 months (730 days) during the five-year period ending on the date of the sale.
- Use Test: You must have lived in the home as your primary residence for at least 24 months (730 days) during the same five-year period. These 24 months do not need to be consecutive.
Here is a table summarizing the ownership and use tests:
| Requirement | Description |
|---|---|
| Ownership Test | You must have owned the home for at least two years (24 months or 730 days) within the five-year period ending on the date of the sale. This means you must hold the title to the property. |
| Use Test | You must have lived in the home as your primary residence for at least two years (24 months or 730 days) within the same five-year period. The months do not have to be consecutive. Short temporary absences, such as for vacation or seasonal leave, are generally counted as periods of use. Factors such as where you vote, receive mail, and bank can help determine your primary residence. |
Meeting these tests ensures you can take advantage of the tax exclusion when selling your home. If you don’t meet these requirements, you may still be eligible for a partial exclusion under certain circumstances.
3. Calculating Your Gain or Loss on Home Sales
How do I calculate the gain or loss when selling my house to determine potential tax implications? Calculating the gain or loss when selling your house involves determining the difference between the selling price and your adjusted basis. This calculation is essential for understanding potential tax implications and partnership opportunities.
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Adjusted Basis: Your adjusted basis is typically the original purchase price of your home, plus any permanent improvements you made over the years, such as renovations or additions. It also includes certain settlement fees and closing costs you paid when you bought the home.
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Selling Price: This is the amount you receive from the sale of your home, minus any selling expenses like realtor fees, advertising costs, and legal fees.
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Gain or Loss Calculation:
- Gain: If the selling price is higher than your adjusted basis, you have a capital gain.
- Loss: If the selling price is lower than your adjusted basis, you have a capital loss. However, you cannot deduct a loss from the sale of your primary residence for tax purposes.
Here is a table illustrating the calculation of gain or loss:
| Item | Description | Example |
|---|---|---|
| Original Purchase Price | The initial amount you paid for the home. | $200,000 |
| Improvements | Costs of permanent upgrades and renovations (e.g., new roof, kitchen remodel). | $50,000 |
| Adjusted Basis | Original Purchase Price + Improvements. | $250,000 |
| Selling Price | The amount you received from the sale. | $400,000 |
| Selling Expenses | Costs associated with the sale (e.g., realtor fees, advertising). | $30,000 |
| Net Selling Price | Selling Price – Selling Expenses. | $370,000 |
| Capital Gain | Net Selling Price – Adjusted Basis (If positive, it’s a gain; if negative, it’s a loss, but losses are not deductible for primary residences). | $120,000 |
For example, if you bought a house for $200,000, spent $50,000 on improvements, and sold it for $400,000 after paying $30,000 in selling expenses, your capital gain would be $120,000 ($370,000 – $250,000). This is the amount you’ll need to consider when determining your tax liability.
4. Claiming the Home Sale Exclusion on Your Tax Return
How do I claim the home sale exclusion on my tax return and potentially reduce my tax liability? To claim the home sale exclusion, you typically don’t need to report the sale on your tax return if the entire gain is excluded. However, if you receive Form 1099-S or have a taxable gain, you must report the sale using Schedule D (Form 1040), Capital Gains and Losses.
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When to Report:
- If your gain is entirely excluded (under $250,000 for single filers or $500,000 for married couples filing jointly) and you did not receive Form 1099-S, you generally don’t need to report the sale.
- If you receive Form 1099-S, Proceeds from Real Estate Transactions, you must report the sale on your tax return, even if you have no taxable gain.
- If your gain exceeds the exclusion limits, you must report the sale and pay capital gains tax on the excess amount.
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How to Report:
- Use Schedule D (Form 1040) to report the sale. You’ll need to provide information about the date you bought and sold the home, the selling price, your adjusted basis, and the amount of gain or loss.
- If you qualify for a partial exclusion due to not meeting the ownership or use tests, you’ll need to explain the circumstances on Form 8949, Sales and Other Dispositions of Capital Assets.
Here is a table outlining the steps to report the sale on your tax return:
| Step | Description |
|---|---|
| 1. Determine If Reporting is Necessary | Check if you received Form 1099-S or if your gain exceeds the exclusion limits ($250,000 single, $500,000 married filing jointly). If either is true, you must report the sale. |
| 2. Complete Schedule D (Form 1040) | Fill out Schedule D with the necessary information, including the date of purchase, date of sale, gross sales price, cost or other basis, and any expenses of sale. |
| 3. Calculate Your Gain or Loss | Calculate the gain or loss by subtracting your adjusted basis (original purchase price plus improvements) from the net sales price (sales price minus selling expenses). |
| 4. Claim the Exclusion (If Applicable) | If you meet the ownership and use tests, claim the exclusion up to $250,000 (single) or $500,000 (married filing jointly). Report only the amount of the gain that exceeds the exclusion limit. |
| 5. File Form 8949 (If Necessary) | If you qualify for a partial exclusion due to special circumstances (e.g., change in place of employment, health, or unforeseen circumstances), complete Form 8949 to explain the situation and calculate the excludable amount. You may have to justify why you did not meet the full ownership or use tests. |
For instance, if a single filer sells their home and has a $300,000 gain, they would report the sale on Schedule D, claim the $250,000 exclusion, and pay capital gains tax on the remaining $50,000.
5. Understanding Form 1099-S and Its Impact
What is Form 1099-S and what should I do if I receive one after selling my house? Form 1099-S, Proceeds from Real Estate Transactions, is a document issued by the entity responsible for closing the real estate transaction (usually the title company or escrow company). Receiving Form 1099-S means you must report the sale on your tax return, even if you believe you have no taxable gain.
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Purpose of Form 1099-S: This form reports the gross proceeds from the sale of real estate to the IRS. It includes information such as the seller’s name and Social Security number, the property address, and the closing date.
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Why It Matters: The IRS uses Form 1099-S to verify that you are accurately reporting your home sale on your tax return. If you receive this form, it’s essential to include the sale on Schedule D, even if you qualify for the full exclusion.
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What to Do:
- Verify the information on the form to ensure it is correct.
- Report the sale on Schedule D (Form 1040), Capital Gains and Losses, regardless of whether you have a taxable gain.
- Keep a copy of Form 1099-S with your tax records for future reference.
Here is a table outlining the key information on Form 1099-S:
| Box Number | Description | Importance for Seller |
|---|---|---|
| Box 1 | Gross Proceeds | This is the total amount you received from the sale before any deductions. Use this figure when calculating your gain or loss on Schedule D. |
| Box 2 | Date of Closing | The date the property was officially transferred. This helps determine the holding period, which affects the capital gains tax rate (short-term vs. long-term). |
| Box 3 | Address or Legal Description of Property | Verifies that the sale being reported is indeed for your property. |
| Box 4 | Seller’s Taxpayer Identification Number (TIN) | Ensures the sale is correctly attributed to you for tax purposes. |
| Box 5 | Buyer’s Part of Real Estate Tax | Indicates any real estate tax the buyer paid on your behalf. This can affect your adjusted basis and the amount of gain or loss. |
| Box 6 | Other Information | May contain details such as whether the seller received or will receive property or services as part of the consideration. This may have additional tax implications to consider. |
For example, if you sold your house and received Form 1099-S showing gross proceeds of $400,000, you must report this on Schedule D, even if your gain is fully excluded. Failing to do so could result in IRS inquiries or penalties.
6. Handling Losses from the Sale of Your Home
Can I deduct a loss if I sell my house for less than what I paid for it? Unfortunately, you cannot deduct a loss from the sale of your primary residence for tax purposes. The IRS considers the sale of a personal residence a personal transaction, and losses from personal transactions are not deductible.
- Non-Deductible Losses: If you sell your home for less than your adjusted basis, the loss is considered a non-deductible personal loss. This means you cannot use the loss to offset other income or capital gains on your tax return.
- Why Losses Aren’t Deductible: The IRS does not allow deductions for losses on personal-use property because it views the sale of a home as a consumption activity rather than an investment activity.
- Record Keeping: Even though you can’t deduct the loss, it’s still essential to keep records of the sale, including the purchase price, improvements, selling price, and selling expenses. These records may be useful for other tax purposes or in case of an IRS inquiry.
Here is a table illustrating why losses on the sale of a primary residence are not deductible:
| Reason | Explanation |
|---|---|
| Personal Use Property | Your primary residence is considered personal-use property, not an investment property. Losses on personal-use property are generally not deductible. |
| Non-Business Transaction | The sale of your home is typically a personal, non-business transaction. Tax laws generally do not allow deductions for losses incurred during personal transactions. |
| IRS Regulations | IRS regulations specifically state that losses from the sale of a primary residence cannot be claimed as a deduction on your tax return. This is due to the nature of the asset being used for personal living rather than for business or investment purposes. |
| No Offset for Other Income/Gains | Unlike losses from investment properties or business assets, you cannot use the loss from the sale of your home to offset other income or capital gains. This is a significant difference compared to how losses are treated in investment or business contexts. |
For example, if you bought a house for $300,000 and sold it for $250,000, you have a $50,000 loss. However, you cannot deduct this loss on your tax return. Understanding this rule can help you avoid missteps when filing your taxes.
7. Selling Multiple Homes and Tax Implications
What happens if I own multiple homes and sell one – how does this impact my taxes? If you own multiple homes, you can only exclude the gain from the sale of your main home. You must pay taxes on the gain from selling any other home that is not considered your primary residence.
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Primary Residence: The primary residence is the home where you live most of the time. Factors such as where you vote, receive mail, and bank are used to determine your primary residence.
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Taxation of Other Homes: If you sell a second home, vacation home, or rental property, the gain is subject to capital gains tax. You cannot exclude any of the gain unless the property was also used as your primary residence for at least two out of the five years before the sale.
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Reporting Requirements: You must report the sale of any home that is not your primary residence on Schedule D (Form 1040), Capital Gains and Losses. You’ll need to provide information about the date you bought and sold the home, the selling price, your adjusted basis, and the amount of gain or loss.
Here is a table summarizing the tax implications of selling multiple homes:
| Type of Home | Exclusion Eligibility | Reporting Requirements |
|---|---|---|
| Primary Residence | You can exclude up to $250,000 (single) or $500,000 (married filing jointly) if you meet the ownership and use tests. The home must have been your main residence for at least two out of the five years before the sale. | If the gain is fully excluded and you did not receive Form 1099-S, reporting is generally not required. If you received Form 1099-S or the gain exceeds the exclusion, report the sale on Schedule D (Form 1040). |
| Second Home/Vacation Home | No exclusion unless the property was also used as your primary residence for at least two out of the five years before the sale. Without meeting the primary residence criteria, the gain is fully taxable. | The sale must be reported on Schedule D (Form 1040), regardless of whether Form 1099-S was received. Report the date of purchase, date of sale, sales price, cost basis, and selling expenses to calculate the gain or loss. |
| Rental Property | No exclusion. The gain is subject to capital gains tax, and you may also need to recapture depreciation. The property must have been actively used for rental purposes and cannot qualify for the primary residence exclusion unless you convert it to your primary residence for at least two years before the sale. | The sale must be reported on Schedule D (Form 1040), and any depreciation recapture must be reported on Form 4797, Sales of Business Property. Detailed records of rental income and expenses, including depreciation, are essential for accurate reporting. |
For example, if you sell your primary residence and a vacation home in the same year, you can only claim the exclusion on the gain from the primary residence. The gain from the vacation home is fully taxable and must be reported on Schedule D.
8. Mortgage Debt Forgiveness and Tax Implications
Is mortgage debt forgiveness considered taxable income? Generally, forgiven or canceled debt is considered taxable income by the IRS. This includes situations where you had a mortgage workout, foreclosure, or other canceled mortgage debt on your home.
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Debt as Income: When a lender forgives part or all of your mortgage debt, the amount forgiven is treated as income. This is because you essentially received something of value (the forgiven debt) that you didn’t have to pay back.
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Exclusion for Qualified Principal Residence:
- Prior to January 1, 2026, you could exclude debt discharged on a qualified principal residence from income. This exclusion applied if the debt was discharged before this date or if a written agreement for the debt forgiveness was in place before this date.
- However, it is important to verify the current status of this exclusion, as tax laws can change.
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Reporting Requirements: If you have forgiven debt that is considered taxable income, you will receive Form 1099-C, Cancellation of Debt, from the lender. You must report this income on your tax return.
Here is a table summarizing the tax implications of mortgage debt forgiveness:
| Scenario | Tax Implications |
|---|---|
| Mortgage Workout | If part of your mortgage debt is forgiven as part of a workout agreement, the forgiven amount is generally considered taxable income. |
| Foreclosure | The difference between the mortgage balance and the property’s fair market value at the time of foreclosure may be considered taxable income. Additionally, any deficiency (the remaining debt after the sale of the property) that is forgiven is also taxable. |
| Short Sale | If the lender agrees to a short sale (selling the property for less than the outstanding mortgage balance) and forgives the remaining debt, the forgiven amount is generally taxable income. |
| Debt Forgiveness | Any forgiven debt is generally considered taxable income unless it qualifies for a specific exclusion under IRS rules. Before 2026, the Mortgage Forgiveness Debt Relief Act provided an exclusion for debt forgiven on a qualified principal residence, subject to certain limitations, but this has to be verified for current rules. |
For example, if you had $50,000 of mortgage debt forgiven in a mortgage workout, this amount would typically be considered taxable income, and you would need to report it on your tax return.
9. Exceptions to the Home Sale Rules
Are there any exceptions to the standard home sale rules that could benefit me? Yes, there are exceptions to the standard home sale rules that could benefit specific individuals, including those with disabilities, certain members of the military or intelligence community, and Peace Corps workers.
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Disability Exception: If you sell your home because of a disability, you may be able to exclude the gain even if you do not meet the two-year use test. The IRS provides specific guidelines and requirements for this exception.
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Military and Intelligence Community: Members of the military and intelligence community may be able to suspend the five-year test period for up to ten years if they are serving on qualified official extended duty. This allows them more time to meet the ownership and use tests.
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Peace Corps Workers: Peace Corps workers may also be able to suspend the five-year test period during their service.
Here is a table summarizing the exceptions to the home sale rules:
| Exception | Criteria | Benefit |
|---|---|---|
| Disability | The sale of your home must be primarily due to a physical or mental disability. You must provide documentation from a licensed physician verifying the disability. The IRS looks at factors such as whether you significantly improved the property to accommodate your disability, the proximity of medical care to your residence, and whether the sale alleviates financial stress caused by medical expenses. | Allows you to exclude the gain even if you do not meet the two-year use test. You may still be eligible for a partial exclusion based on the percentage of the two-year period that you did live in the home. |
| Military and Intelligence Community | Must be on qualified official extended duty, which means being stationed more than 50 miles away from the main home or residing in government housing under government orders for more than 90 days, or for an indefinite period. This applies to service members in active duty, reservists, and members of the intelligence community. | Allows you to suspend the five-year test period for up to ten years. This provides additional time to meet the ownership and use tests and avoid or reduce capital gains tax on the sale. This can be particularly advantageous if you relocate frequently due to military assignments. |
| Peace Corps Workers | Must be serving abroad as a Peace Corps volunteer. | Allows you to suspend the five-year test period during your service. This provides additional time to meet the ownership and use tests and avoid or reduce capital gains tax on the sale. The suspension is limited to a maximum of ten years, and it only applies to the period of your Peace Corps service. |
| Sale Due to Unforeseen Circumstances | If the primary reason for selling your home is due to an unforeseen circumstance, such as job loss, divorce, or death, you might be eligible for a reduced exclusion, even if you don’t meet the full two-year ownership and use tests. | The amount of the exclusion is based on the portion of the two years that you lived in the home. If you lived in the home for one year, you can exclude up to half of the standard exclusion amount. |
For example, if a member of the military is deployed overseas for three years, they can suspend the five-year test period for that time, giving them more flexibility in meeting the ownership and use tests when they eventually sell their home.
10. Seeking Professional Tax Advice
When should I seek professional tax advice to ensure compliance and maximize my tax benefits? You should seek professional tax advice when you have complex tax situations, such as selling multiple properties, dealing with mortgage debt forgiveness, or if you qualify for any of the exceptions to the standard home sale rules.
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Complex Situations: If you have multiple homes, rental properties, or other complex financial situations, a tax professional can help you navigate the rules and ensure you are taking advantage of all available tax benefits.
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Debt Forgiveness: Dealing with mortgage debt forgiveness can be complicated. A tax professional can help you understand the tax implications and reporting requirements.
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Exceptions: If you believe you qualify for any of the exceptions to the home sale rules, a tax professional can help you gather the necessary documentation and ensure you are claiming the exception correctly.
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Peace of Mind: Even if your situation seems straightforward, consulting a tax professional can provide peace of mind knowing that you are in compliance with all applicable tax laws.
Here is a list of situations where seeking professional tax advice is highly recommended:
- Selling multiple properties in a single year
- Receiving Form 1099-C for cancellation of debt
- Qualifying for exceptions due to disability, military service, or Peace Corps work
- Having significant capital gains from the sale
- Dealing with complex financial or investment situations
- Needing help understanding and complying with tax laws
By seeking professional tax advice, you can ensure compliance with tax laws and maximize your financial outcomes.
11. How to Improve Your Home’s Adjusted Basis
Are there ways to increase my home’s adjusted basis to reduce potential capital gains taxes? Yes, understanding how to improve your home’s adjusted basis is crucial for reducing potential capital gains taxes when you sell your property. The adjusted basis is a key factor in calculating your profit (or gain) from a home sale, which is subject to capital gains taxes.
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Document Home Improvements: Keep detailed records and receipts for all qualifying home improvements. Improvements that add value to your home, prolong its life, or adapt it to new uses can increase your adjusted basis. Examples include:
- Adding a room, deck, or patio
- Installing new flooring, roofing, or siding
- Upgrading plumbing or electrical systems
- Adding insulation or energy-efficient features
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Understand What Doesn’t Qualify: Routine repairs and maintenance typically don’t increase your adjusted basis. These are expenses that keep your home in good condition but don’t add significant value or extend its life. Examples include:
- Painting or wallpapering (unless part of a larger renovation)
- Replacing broken windows or doors with similar ones
- Repairing leaks or fixing minor plumbing issues
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Keep Accurate Records: Maintain a comprehensive record-keeping system to track all improvements and related expenses. This system should include:
- Dates of the improvements
- Descriptions of the work done
- Invoices and receipts from contractors and suppliers
- Photos documenting the improvements
Here is a table that highlights improvements that can and cannot increase adjusted basis:
| Improvements That Increase Adjusted Basis | Routine Repairs and Maintenance (Do Not Increase Adjusted Basis) |
|---|---|
| Adding a room or deck | Painting a room |
| Installing new flooring or roofing | Replacing broken windows with similar ones |
| Upgrading plumbing or electrical systems | Repairing leaks or fixing minor plumbing issues |
| Adding insulation or energy-efficient features | Routine landscaping or yard work |
| Remodeling kitchen or bathroom | Replacing worn-out appliances with similar models |
| Installing central air conditioning | Minor repairs to existing fixtures |
For instance, if you bought a house for $200,000 and spent $50,000 on a new kitchen and $20,000 on a new roof, your adjusted basis would be $270,000. If you later sell the house for $400,000, your capital gain would be $130,000, rather than $200,000 if you hadn’t made those improvements.
12. Tax Implications of Converting a Rental Property to a Primary Residence
What are the tax implications if I convert a rental property into my primary residence before selling? Converting a rental property into your primary residence before selling can create a unique tax situation. If you live in the property as your primary residence for at least two out of the five years before the sale, you may be able to exclude a portion of the capital gain.
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Two-Year Rule: To qualify for the capital gains exclusion, you must live in the property as your primary residence for at least two years (24 months or 730 days) within the five-year period leading up to the sale.
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Prorated Exclusion: If you use the property as both a rental and a primary residence, you may need to prorate the capital gains exclusion. This means you can only exclude the portion of the gain that is attributable to the period you used the property as your primary residence.
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Depreciation Recapture: When you sell a property that was previously used as a rental, you may be subject to depreciation recapture. This means you may have to pay tax on the depreciation you previously claimed as a deduction.
Here is a table illustrating how to calculate the prorated exclusion and depreciation recapture:
| Calculation | Description | Example |
|---|---|---|
| Capital Gain | Selling Price – Adjusted Basis (Adjusted Basis = Original Purchase Price + Improvements – Accumulated Depreciation). | Selling Price: $400,000, Original Purchase Price: $200,000, Improvements: $50,000, Accumulated Depreciation: $30,000. Adjusted Basis: $200,000 + $50,000 – $30,000 = $220,000. Capital Gain: $400,000 – $220,000 = $180,000. |
| Primary Residence Usage Percentage | (Number of Months Used as Primary Residence / Total Months of Ownership) x 100. | Lived as Primary Residence for 36 months out of 120 months. Percentage: (36 / 120) x 100 = 30%. |
| Excludable Gain (Single) | Primary Residence Usage Percentage x Maximum Exclusion Amount ($250,000 for Single Filers). | 30% x $250,000 = $75,000. |
| Taxable Gain (Single) | Capital Gain – Excludable Gain. | $180,000 – $75,000 = $105,000. |
| Depreciation Recapture | The amount of depreciation previously claimed on the property. Taxed at your ordinary income tax rate, up to a maximum rate of 25%. | $30,000 depreciation recapture, taxed at ordinary income tax rate (up to 25%). |
For example, if you owned a property for 10 years, rented it out for 7 years, and then lived in it as your primary residence for the final 3 years before selling, you would need to prorate the capital gains exclusion. If your capital gain was $100,000, you could only exclude 30% of it (3 years / 10 years), or $30,000, assuming you are a single filer. The remaining $70,000 would be subject to capital gains tax, and you would also need to account for depreciation recapture on the previous rental use.
13. The Role of Residency in Determining State Income Tax
How does my state of residency affect whether I pay income tax when selling my house? Your state of residency plays a crucial role in determining whether you pay state income tax when selling your house. States vary in their tax laws regarding capital gains, and some states have no income tax at all.
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States with No Income Tax: Some states, like Texas, Florida, and Washington, have no state income tax. If you are a resident of one of these states, you will not pay state income tax on the capital gains from the sale of your home.
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States with Income Tax: Other states, like California, New York, and Massachusetts, have state income tax. If you are a resident of one of these states, you will likely pay state income tax on the capital gains from the sale of your home.
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Residency Requirements: To establish residency, you typically need to live in the state for a certain period and demonstrate an intent to make the state your permanent home. Factors such as where you vote, register your car, and bank are considered when determining residency.
Here is a table summarizing the state income tax implications for selling a home in different states:
| State | State Income Tax | Tax Implications for Home Sale |
|---|---|---|
| Texas | No | No state income tax on capital gains from the sale of a home. |
| Florida | No | No state income tax on capital gains from the sale of a home. |
| Washington | No | No state income tax on capital gains from the sale of a home. |
| California | Yes | State income tax on capital gains from the sale of a home. Rates vary depending on income level. |
| New York | Yes | State income tax on capital gains from the sale of a home. Rates vary depending on income level. |
| Massachusetts | Yes | State income tax on capital gains from the sale of a home. The short-term capital gains rate is higher than the long-term capital |
