Hello and thanks in advance for any clarification you can offer. Here is our situation:

- My wife and I bought our current house just over 20 months ago, and we are looking to sell.
- When we sold our previous house, we made a profit of about 15K on it, but were able to exempt that because we lived there for 5 years.
- We bought the new house a few days before selling the old one so brought cash to the table for the down payment, then re-imbursed ourselves with the check from the sale of the old house.
- Its looking like we are going to make about another 20K selling the current house. We are not moving for any of the exemption reasons, so I don't think that we can exempt portions of the gains.

I read somewhere that if you had Exemptable capital gains, but then bought and sold a new house in under 2 years so any additional capital gains were not able to be exempted, that you would have to pay tax on the gains from the same of both houses. I am wondering if this is actually the case, and what our capital gains tax liability will ultimately be.

We are in the tax bracket where we would pay 15% for the capital gains tax, but we are trying to save as much as we can for a down payment on a future home, so the less we have to pay out the better.

Thanks, and please let me know if any of this was not clear.