can you sell stock to purchase your primary residence, tax free

Forum|Forum|9 months ago
June 5, 2025
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selling stock to purchase home, capital gains tax to pay

xmasbaby0

You might be confusing this with using money from an IRA for a down payment on a house. If you are under 59 1/2 and take money from a traditional IRA (not a 401k) to make a down payment on a home, the 10% early withdrawal penalty is waived on the first $10,000 although the distribution itself is taxable. There is no such rule for selling stock to purchase a home.

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Opus 17

No. If you sell stock that has a gain, you pay the tax. It doesn't matter how you plan to use the money.