If you have lived in the property as your primary residence for at least two of the past five years, you can exclude up to $250,000 of gain ($500,000 for married couples filing jointly) under IRC §121. If your gain exceeds the exclusion - common for long-held NYC apartments with substantial appreciation - you pay capital gains tax only on the amount above the excluded threshold. The exclusion does not require reinvestment in another property.
From the seller playbook: Capital Gains Tax Planning for NYC Property Sales
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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