2007-03-14 08:09:07 · 4 answers · asked by Elle J 1 in Business & Finance ➔ Taxes ➔ United States
call the title company in your are and tell them that you want to do a 1031 Exchange. The proceeds that you get off of the sale of your house will be held in escrow at the title company and you have I think 30 days to use that money to put towards the purchase of your new house.
I am pretty sure that how it works, don't quote me exactly, but get with a Title Company in your county, they should be able to help you.
2007-03-14 08:19:51 · answer #1 · answered by Anonymous · 0⤊ 6⤋
If you lived in the home as your primary home for two of the five years immediately before the sale, and owned it for two of those same five years, then you can exclude up to $250,000 of gain from tax ($500K on a joint return) as long as you haven't taken the exclusion on another home within the two years immediately prior to the sale. There is no longer a requirememt to reinvest the gain into a new home.
2007-03-14 08:16:30 · answer #2 · answered by Judy 7 · 4⤊ 2⤋
If you owned AND lived in the home 2 of the past 5 years AND did not claim the exclusion with in the past 2 years you can exclude up to $250,000.00 ($500,000.00 if married) of gain on the sale of your home.
2007-03-14 08:15:02 · answer #3 · answered by R Worth 4 · 2⤊ 1⤋
No, you have up to 5 years to reinvest the monies into a primary residence before you would have to pay the tax penalty.
2007-03-14 08:18:29 · answer #4 · answered by Dave 5 · 0⤊ 4⤋