Tax Implications of Selling Your House for Cash in New Haven
A cash sale is not taxed differently than a financed sale — but the speed can catch sellers off guard at tax time. Here's a plain-English rundown of what to expect. Talk to a CPA before closing if the numbers are large.
Federal capital gains
Primary residence exemption: single filers exclude up to $250k of gain, married filing jointly up to $500k, if you lived there 2 of the last 5 years. Most Connecticut sellers pay $0 federal on a primary home.
Investment properties don't get this exemption. Consider a 1031 exchange if you're rolling into another investment property.
Connecticut conveyance taxes
Connecticut generally charges state and municipal real estate conveyance taxes based on the sale price and property type. Your closing attorney can calculate the exact amount; our written offer explains which standard closing costs we cover.
1099-S at closing
The closing attorney or settlement provider may issue a 1099-S reporting the sale to the IRS. It arrives in January — do not miss it on your return even if the sale is tax-free.