Will the proceeds for the home owner be taxed as capital gains? | Hacker News

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NoRagrets on Jan 7, 2022 | parent | context | favorite | on: Launch HN: Homestead (YC W20) – Lot-splitting to b...

Will the proceeds for the home owner be taxed as capital gains?

sam_schneider on Jan 8, 2022 [–]

Yes.

NoRagrets on Jan 8, 2022 | [–]

So that’s 20% capital gains as it’s probably going to be long term capital gains. There is no 1031 exchange taxes deferred.

Will it be before or after your 20%? It’s not the primary residence so would they still be able to claim the 250k/500k deduction?

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