Put the house on the market today, and you’ll pay taxes through the nose. If you’ve been in the house less than a year, anything you get to keep after commissions is taxable as ordinary income. 9.3% state and 25->28->33% federal. If you bought for 400k earlier in the year and you sell for 500k now, once everyone had their cut, you’ll pocket something like 40-45k.
Gets better after a year (15% federal + 9.3% state), both taxes go to zero after two years.
