These are all good answers. Talk to your local realtor. http://www.facebook.com Michael Benninger
949-235-0099

Mariann
Only if you make a profit.
Look at the stats, ask your Realtor for the numbers. Most people that sell within two or three years are not going to make a profit.

Check with a CPA for details.

Marianne:

A good CPA that you can consult with is Adam Knolls. He can be reached at 614-581-5847.

Best of luck,

Brittany Simonelli, Realtor
Revealty
Buy. Sell. Understand.

If you have lived in your home for less than 2 years in the past 5 years you would have to pay capital gains on the profit of the sale. However if the profit is a significant sum of money you should contact a real estate attorney and/or a tax accountant regarding the possibility of a 1031 Exchange to defer any tax obligation. Remember the profit is calculated by taking your purchase price, adding any improvements you can produce receipts for and subtracting that total from the sales price.
So if you have substantial profits you should consider a 1031 Exchange or delaying the closing if agreeable to the buyer. It is rare in this market for someone to have substantial profits with less than two years of ownership.