In response to:

Will You Have to Pay Capital Gains Taxes on the Sale of Your Home?

45caliber Wrote: Feb 21, 2013 2:50 PM
If you do have the pay the capitol gains tax if you sell your home (a tax on the amount your house has gone up in value since you bought it), will you also get a tax break if your house sells for less ... as many are doing right now?

Dear Carrie,

Two and a half years ago, my husband and I moved from a home we had owned and lived in for 10 years. At that time, we bought a new house and have been renting out the old one. Will we have to pay capital gains if we sell the old house? --A Reader

 

Dear Reader, Great question -- and good you're asking it now. That's because, while there are generous exclusions allowed when it comes to capital gains on the sale of a home, timing is crucial, and the clock is...