Selling Home Before 2 Years

Legal Questions

When you purchase a home is there a penalty for selling it before living in it for 2 years?

Question:
When you purchase a home is there a penalty for selling it before living in it for 2 years?

Answer:
Yes, a homeowner selling a house before they have owned it two years will be responsible to pay to the IRS capital gains tax on the increase in value between the purchase price and the net sale price. If you are not making a profit, then there is no IRS penalty.


Attorney: Mark Miller

Miller Johnson Schroeder, PLC
728 Pleasant Street #101
St. Joseph, Michigan, 49085
(269) 983-1000

Our Michigan office is centrally located in Berrien County, enabling our lawyers to serve clients throughout "Southwest Michigan", including St. Joseph, Stevensville, Benton Harbor, Bridgman, Baroda, and the surrounding areas.

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