How do I purchase a new house and rollover my taxes from my old house to new? I know it is a 1 time only thing

Question

I know it is on previously owned property not brand new built houses, you continue to pay what you were paying despite the cost of your "new" house you can only do it once in your life time

Answer 1

If you're talking about not having to pay capital gains taxes when you sell, the law has changed totally. Now the rules have no age limits or requirements to reinvest in another home.

If you lived in the house you sold as your main home for at least two of the previous five years, and owned it for at least two of the previous five years, the first $250,000 of profit ($500,000 if married filing joint) is not taxed. You would only pay on any profit over these limits. You can use this exemption every two years.

Answer 2

As the above answer stated there is an exemption from taxable income of $250,000 per taxpayer of gain on sale of a personal residence ($500,000 on a joint return). If your gain is less than this amount you don't even report the sale on your return.
This exemption applies to the sale of your personal residence only. It doesn't matter if the house was new or used when you bought it. In order to qualify for the exemption you must have lived in the house for two out of the last five years. These years don't have to be consecutive, you could have lived in it in year two and year five and still qualify.
This exemption is not a one time only deal like the exemption was under pre 1997 law. You can claim this exemption every two years. The two years is measured from the settlement date of the previous home sale that you would have taken an exemption on.
The exemption only applies to the sale of your primary or personal residence. It does not apply to second homes nor rental properties.
The exemption is just that it does not have any affect on a new home purchased like the gain deferral rules of the old law did.

Answer 3

Are you talking about avoiding the capital gains tax? That's the tax you would pay on whatever profit (if any) you made. I.e.,, the difference between the price you paid and the price you sold it for.

As the law stands now, you have to make a pretty big profit to be liable for any taxes at all. If you are single, the first $250,000 in profit is exempt. If you are married, your exemption is $500,000.

Also, under the new tax laws, you are no longer limited to using it only once. You can take that exemption any time you sell your primary residence. (I don't think it applies to rental income or summer homes, but check w/a tax pro if that's your situation.)

Answer 4

The "rollover" rule of which you speak went away in 1997.