We’re moving cities and selling the ‘starter home’ I bought (bought single, now married), but with prices where they are, we’re going to rent for a while to get our feet under us in the new city and see where prices are next spring. My father told me if we sell, and wait more than a year to buy our next home (ie 12 month lease) we’d have to pay capital gains tax. Is this correct?
I bought our house with only myself on the note for $120,000 3 years ago, would likely sell for $165,000 right now, and likely net $60,000 in proceeds. Then we rent for a year (hopefully less, but who knows), then buy our next home in the new city using our proceeds as down payment. Would our proceeds be taxable in this scenario?