capital gains tax

The replacement property doesn’t have to be more expensive, but if it’s less expensive or has a smaller mortgage than the property you sell, you could owe capital gains taxes on the difference.

Dear Liz: You recently responded to an elderly couple who planned to move into assisted living, but were concerned about capital gains taxes on the sale of their home.

The two of you can shelter up to $500,000 of home sales profits from capital gains taxes.

I understand that when I sell, I will owe capital gains tax because it is no longer my primary residence.

Answer: Any home sale is potentially subject to capital gains taxes.