If the property was your primary residence you do not have to pay Cap Gains up to $250k for a single person...however, you must owned for 2 years. What makes you think the home is worth more today that it was when you bought it? Just given market conditions...
At least consult with a CPA, I wouldn't make an impulsive decision.

Hi Gail,

You only have to pay capital gains if you actually have a capital gain after your selling expenses etc. Maine has a law that requires out of state sellers to pay 2.5% withholding of the proceeds to the state. This withholding is to make sure you file a Maine State tax return and pay any capital gains tax you may owe.

If you do not have a capital gain you can get this withholding waived. I can show you the process for getting the withholding waived.

Where is your property in Maine?

Feel free to contact me directly at michael@MainePropertySales.com or my direct line 207-846-5110

Here is Publication 523 Selling your Home
from the Internal Revenue Service:


http://www.irs.gov/publications/p523/ar02.html



You should meet with a CPA or Tax Attorney and get their Advice.
The $200 that they will charge you for an hour is money well spent.

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Best wishes,
Fred
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