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

Managing Inherited IRAs: Distributions and Taxes https://t.co/kFPKXtN4o6
- Monday Oct 16 - 4:00pm

wwm twitter

Investing options: 3 Warren Buffett stocks for retirees https://t.co/e606NSvUk6
- Sunday Oct 15 - 4:00pm

wwm twitter

Epcot's Food and Wine Fest expands around the world https://t.co/yefIhXwFpL
- Saturday Oct 14 - 4:00pm