mmbump asked:
How long after a sale of a home do you have to purchase your next home before you have to pay capital gain taxes on those earnings from your home sale?
With in that same year? Or is it calender year, or longer?????
How long after a sale of a home do you have to purchase your next home before you have to pay capital gain taxes on those earnings from your home sale?
With in that same year? Or is it calender year, or longer?????
Zero. If you have lived in your home for two of the past five years, the first $250,000 of profit ($500,000 for a couple) is exempt from tax immediately. The old reinvestment of profits procedures is no longer in effect.
The rule about repurchasing a home (it was within a year, 18 months for new construction) has been gone now for quite a few years. Now, as long as you owned the home and lived in the home as your main home for two of the five years immediately prior to the sale, you don’t pay any tax on up to $250K of gain – $500K on a joint return. Unless your gain is over that, you don’t report it.