Tax on Capital Gains and 1st Home Purchase

I sold shares of a mutual fund & other stocks in order to pay a down payment on a first time home purchase. Do I still have to pay capital gains tax on those investments even though the $$$ was invested straight into a home?

Yes. If the funds were sold in a taxable account you will still pay tax on the capital gains. If that money was in a IRA then it will be taxed at the regular income rate but you will not have to pay the 10% penalty. In this case you can pull out a maximum of $10,000. If it was in a Roth IRA and you have held it for 5 years then you can pull out the principal tax free.

Recent Tweets

wwm twitter

Great day at Berry College giving our clients Billy and Wanda Brewer a personal tour of the school. Billy and... http://t.co/6nurHnyNmi
- Friday Nov 21 - 10:17pm

wwm twitter

I posted a new photo to Facebook http://t.co/40vHS1uxlq
- Wednesday Nov 19 - 2:49pm