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

RT @FlyingMagazine: Ever seen this many hot air balloons? Beautiful video from world record flight. http://t.co/dgL2hmg1w8 http://t.co/Y2NZ…
- Saturday Aug 1 - 11:52am

wwm twitter

RT @iShares: Why it's time to think rethink your bond investing strategy http://t.co/TkowoaGZh4 http://t.co/QsNimzoP9W
- Saturday Aug 1 - 11:49am