I am in the United States, in Colorado.
I purchased a house in July of 2013. It was in poor condition, so I spent the first two months repairing things before moving in. Now, 11 months after moving in, I'm ready for a change. Here's the plan. I'm wondering what the tax implications will be?
- Purchased July, 2013
- Purchase price: $72,000
- Down payment / closing costs: $20,000
- Materials and permits for repairs: $20,000
- Sell in September, 2014 for $150,000, taking away ~$75,000 in cash.
Basically, I'll make $35,000 on the current house after all expenses. How much do I need to put toward my next house to avoid taxes? I have my eyes on a house for $130,000. Ideally, I'd put $50,000 down, use $10,000 toward repairs/upgrades, and use the remaining $15,000 to pay off debt.