If I buy a house for $300k, and then five years later sell for $400k, do I owe any taxes on the sale? ?

Question

If so, do I just owe taxes on the amount the house has appreciated in value?

Answer 1

Capital gain is the difference between sale price and cost basis (typically purchase price and improvements).

If you are in the USA, and lived in the home for at least 2 of the 5 years before selling it, up to $250,000 of capital gain is excluded from tax ($500,000 if married filing jointly).

Note that YA is international and answers could come from any country.  So nobody knows if you are discussing Canadian, Australian, or other $ without stating your country.

Answer 2

Not if you purchase another house within 6 months are you or your spouse is over the age of 65.  I forgot to add, this must be your homestead.  If this was simply a commercial transaction you will owe taxes on the profit.

Answer 3

how are you sure you will make 100k with the housing market the way it is now.   if you sell a house and make a profit you owe capital gains tax.  you can deduct any improvements  you made during the five years and have lived in the house.  it you buy another house there is an exclusion but that will decrease the cost of the second house.  see a tax person.