How long do I have between I selling and buying a house in order to not have to pay taxes on the profit?

Answer 1

You may exclude up to $250,000 ($500,000 if filing jointly) of gain from any home that was your primary residence for 2 of the last 5 years if you owned the home for 2 of the last 5 year. It is not necessary for the 2 years of ownership to be the same as the 2 year of residence. This exclusion can be taken every 2 years. Buying a new home is not a factor.

Answer 2

The rules actually changed in 1999, so anyone claiming there's a time limit or age requirement hasn't been up to date in a long time.

You can exclude up to $250,000 profit ($500,000 married couple) on a house you lived in for 2 of the last 5 years.

Special rules apply if you claim (or could claim) depreciation such as a home office expense.

Answer 3

The rules changed a couple years ago, and there isn't an age limit or a requirement to buy another house any more to have some or all of your profit exempt from tax.

Steven F gives the correct info.

Answer 4

There is no period of time. If you owned the house and lived in it for the last two years, you are entitled to a capital gain of $250000 if filing single; $500000 if filing jointly. You must have lived in the house as your principal residence for two of the last five years. If you had to sell the house because of illness, a job transfer, or a couple of other special circumstances, you may be able to pro-rate the deduction. Go to www.irs.gov to see the entire rule.

Answer 5

90 days or end of the tax season. If the property is sold in January and the new property is bought before December 31. Then the Profit of the sold house is considered as the same funds you paid at closing. NOTE this means the funds you paid, not the mortgage you took out.

If the profit of the first house is $100,000 and the new house cost $235,000 with a $185,000 mortgage. You will be taxed on the $50,000 you did not put into the new house.

Answer 6

1 year, I believe