My husband and I have had our house since June of 2008. We need to relocate and worry about selling our first house.
Question #1—How do capital gains work? Our purchase price was $ 80,000. Which, was a seemed like a steal (2 acres, 3 outbuildings, 3-4 bedroom farmhouse). Since we’ve bought it we’ve put $ 20,000-$ 25,000 in it. I’ve figured I need about $ 115,000 to break even (home equity loan, pay off original mortgage, and home improvements). I won’t be upset if I make a profit, but will try to make one none the less. I plan to list at $ 135,000. If I make a profit how much am I looking at in taxes? Is this going to be a big hit?
Question #2—Everyone tells us we should check out the USDA Rural Development Loan. I’ve been on the government website and my husband and I qualify financially. Also, according to the map it looks like the area qualifies too. Is it that easy? Is this only for first time home buyers? We had help purchasing our first home from some inheritance. I worry that the money won’t be there this time; especially since there’s no telling when we’ll sell our first house. What are the benefits to this USDA loan? Their website won’t tell me anything! Anyone have any personal insight?
Thanks!

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