Pocket Watch Hunter

If a house is purchased for $ 240,000 and six years later was sold for $ 280,000, will be charged on taxes of $ 40,000?

I do not know not anything about buying and selling houses, but he was curious since watching "House Hunters" on television. How can you make a profit if the fees and interest on a home is more than what you agreed to pay for the house. How can you pocket $ 40,000 on the scenerio above? How can you sell a house and buy another one before the first pay? Please excuse my ignorance. Thank you

If lived in this house, no, no taxes. If it is a rental, then yes, you need capital gains.

Ace in the Pocket Raleigh 2009 futurity Hunter Under Saddle