Re: Capital gains tax question for sale of house
Chalk7 -
I think you are thinking of 1031 (like-kind) exchanges which refers to investment properties. Below is from a website regarding capital gains from homes. However if the property does not meet this criteria and it is considered an investment property then you can defer all capital gains if you use a 1031 exchange, which as Chalk said, you must buy a new property within 180 days and usually your funds must be kept by an intermediary and not in your control during those 180 days. Again, below is regarding the 250k/500k exemption.
Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria
You have lived in the home as your principal residence for two out of the last five years.
You have not sold or exchanged another home during the two years preceding the sale.
Also note that as of 2003, you may also qualify for this exemption if you meet what the IRS calls "unforeseen circumstances" such as job loss, divorce, or family medical emergency. Be sure to review IRS Publication 523 - Selling Your Home, for more information.
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