Home Buying in Woodstock>Question Details

Housebuyer, Home Seller in 30189

Taxes if we do not repurchase immediately.

Asked by Housebuyer, 30189 Tue May 5, 2009

As we are downsizing, how much time do we have between the time we close on the home we are selling and the purchase of another home before taxes on the profit become an issue. Both the home we are selling and the one we would purchase is our primary/only residence?
Thank You

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Glad to have been of help!
Good luck with your move!
Best wishes.........
0 votes Thank Flag Link Wed May 6, 2009
Hmmmm .... 500k+ .. well .. no worries on that.

Thanks Debbie and David.
0 votes Thank Flag Link Wed May 6, 2009
great answer debbie. are you going to profit more than $500,000? If not, then it's a mute point and you have nothing to worry about. Pay the tax accountant for their expert opinion. What you get on Trulia is free. And you always get what you pay for.. and sometimes less.
0 votes Thank Flag Link Tue May 5, 2009
Hi Homebuyer
You no longer have to "roll over" the profit from the sale of a primary residence into the purchase of another home.
Couples may have a profit of up to $500,000 on the sale of their primary residence without paying capital gains taxes. Singles get a max of $250,000 before cap. gains taxes kick in. Make sure you have a list of all the capital improvements you have made to your home over the years, as that affects your final profit.
Of course, I'd recommend you speak to your tax preparer for more details, and advice on this subject.
Hope this helps!
0 votes Thank Flag Link Tue May 5, 2009
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