US Tax on short term home ownership

My question is: US-specific

QUESTION: We have bought a house in July,2005 and ,I must say it was not(!)
a great buy, so we want to sell the house and buy another one. Is it
possible? Are we gonna pay some extra money?
Thank you...................

david ingram replies;

I am not sure what the question is.

However, if you sell the house before owning and living in it for 24 months,
and profit will be subject to tax. If less than 12 months, it will be
subject to short term rates and if you own it more than a year, it will be
subject to long term capital gains rates.


less than 12 months, straight income tax on any profit zero to 35% plus
state tax

12 to 24 months, capital gains income tax rates - 15% or less

over 24 months - no tax - assuming it was your residence



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