Also a note on taxes.
If you live in a house for more than 2 years you can sell it tax free up to $250k/$500k profit depending on if you are single/married.
However, there is also a partial exclusion, which allows you to divide the amount of your allowed max by the percentage of those two years you lived there (i.e. you live in the house for 8 months, that's 33% of 2 years, so for a married couple you can sell your house with $166k profit). But! That's only if you meet certain criteria, primarily that you move more than 50 miles away due to sickness, natural disaster, divorce, or employment (to name a few).
Otherwise, this profit is considered short term capital gains and da gubbament gets to rob you of probably around 30% of your hard earned dough.
See page 13 here for more details about the partial exclusion: http://www.irs.gov/pub/irs-pdf/p523.pdf
If you live in a house for more than 2 years you can sell it tax free up to $250k/$500k profit depending on if you are single/married.
However, there is also a partial exclusion, which allows you to divide the amount of your allowed max by the percentage of those two years you lived there (i.e. you live in the house for 8 months, that's 33% of 2 years, so for a married couple you can sell your house with $166k profit). But! That's only if you meet certain criteria, primarily that you move more than 50 miles away due to sickness, natural disaster, divorce, or employment (to name a few).
Otherwise, this profit is considered short term capital gains and da gubbament gets to rob you of probably around 30% of your hard earned dough.
See page 13 here for more details about the partial exclusion: http://www.irs.gov/pub/irs-pdf/p523.pdf
