[manaboutown]

Originally Posted by petsetc

In the OP case, there is no way to avoid a taxable gain. If you don't own the house for a year+one day, the profit is ordinary income. After that, it is taxed as a capital gain. Yo might be able to defer taxes through a 1031 exchange but if you don't already know what that is, probably you don't to get involved.

The capital gain is the sale price reduced by original cost+selling cost (commissions-renovation/stuff you had to do in the 90 days prior to the sale-etc)+capital improvements you made (swimming pool, roof,etc)+monies you paid on behalf of the buyer(title insurance,buyers assistance,etc). Google it, it is all straight forward.

Use turbo-tax to do a mock-up or seek professional advice.

My best advice is to sure your closing date is after 1 year and 1 day of purchase!

FWIW

The OP wrote he had lived in the home nine months. To qualify for a 1031 tax deferred exchange a property must be an investment property, not one's personal residence. Are you eligible for a 1031 exchange?