I am thinking about selling my house. I bought this house from my father 12 yrs. Ago. It has appreciated quite a bit since then. I would like to know if I buy another house for more or the same amount of money that I will be selling this house for (a lateral move) am I responsible for any Federal, State or Local taxes? I know there are Capital Gains taxes if you are making money on the house, but I would just like to move to a different area and buy a house for the same price I sell this house for. I live in the New York City area.

If you are the owner occupant of the home (2 out of the last 5 years), the Feds have a $250K individual and $500K couple exclusion whether you buy another home or spend the profit on a car. I just can't remember what the state and local tax laws are. If it is a rental property, check with your tax person about a 1031 Tax Deferred Exchange (that has many rules that must be followed to a tee).

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Originally Posted by singinblond

I am thinking about selling my house. I bought this house from my father 12 yrs. ago. It has appreciated quite a bit since then. I would like to know if I buy another house for more or the same amount of money that I will be selling this house for (a lateral move) am I responsible for any Federal, State or Local taxes? I know there are Capital Gains taxes if you are making money on the house, but I would just like to move to a different area and buy a house for the same price I sell this house for. I live in the New York City area.

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There is no longer a Capital Gains tax on a personal residence that you sell that you have lived in for 2 of the last 5 years. The law changed in 1999. If the house is in your name, properly, there shouldn't be any problem. Call a CPA or tax attorney for an over the phone 10 minute conversation and see if there is anything else to be concerned about in your area.