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Sell house before 2 years of ownership?

I’m a first time home buyer who inherited 50% of a house in CA and bought out the other half through refinancing. I put a good amount of money into fixing the house up (around $150,000) because it was pretty beat up after 40 years, I also turned the garage into a junior ADU. I’m getting low on cash and am unsure what to do next. Construction was a lot more than expected and took a lot longer as well. I decided I’d rather move to another state and buy a cheaper home cash and forgo a mortgage. I’d like to put the house on the market as soon as possible but I won’t hit the two year capital gains requirement until March 2025. It’ll cost me about $30,000 till March in mortgage and property taxes. I have about $600,000 equity in the home and with the $150,000 in improvements puts me at around $750,000 equity, my mortgage has about $428K left on it. I’m curious what the taxes would be if I sold before the two year mark and if it’s worth to sell it now or wait until March of 2025? The home is appraised at $1,061,000 but hasn’t been reassessed with the new improvements yet. I think I can sell for at least 1.2-1.3 million with the ADU making it a multi family dwelling now. Tried reaching out to TAX attorneys but to no avail, was hoping someone with extensive knowledge could give me their opinion on what to do next? Thank You

submitted by /u/Possible_Argument812
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source https://www.reddit.com/r/RealEstate/comments/1dy2714/sell_house_before_2_years_of_ownership/
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