after selling our home, how much time do we have to reinvest our money in new home, before we are liable for capital gains tax?

Asked by Bjc, Mamaroneck, NY Thu Jan 12, 2012

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14
Vaw1234, Home Buyer, Larchmont, NY
Mon Mar 6, 2017
We live in fla. sold our home in Miami and we are moving to Tallahassee fl how long do I before buying a new home before I am taxed on my funds?
1 vote
Donald Mituz…, Agent, Chappaqua, NY
Thu Jan 19, 2012
Capital gains on your primary residence don't kick in until you reach $250k as a single or $500k as a couple. Keep in mind that the cost basis should also include any capital expenditures you made while owning your home. Several people mentioned a 1031 exchange which has nothing to do with your primary residence. There could be an exception if you rented the home recently, declared the income and expenses or depreciated the home. Talk to an accountant for that info. As a side note, I grew up in Mamaroneck and went to MHS.

Donald A Mituzas
Licensed Associate Broker
2008 Realtor of the Year
Prudential Douglas Elliman
New York's #1 Broker
Web Reference:  http://www.nyhomeseller.com
1 vote
dan winter, Home Buyer, Muskego, WI
Mon Oct 9, 2017
I'm selling a condo in Arizona and will buy land in Texas how can I avoid capital gains tax it is not my primary residence. The gain will be 60k
0 votes
rcolan1965, Home Buyer, Jersey City, NJ
Fri Dec 4, 2015
How much capital gain I have to pay if I sell my second apartment in NYC?
The apartment has been rent for the last 3 years
0 votes
Jim_cyr, Home Buyer, Larchmont, NY
Mon Aug 17, 2015
After selling a personal residence, how long do you have to re-invest the profit to avoid capital gains tax?

Is it six or eight months?

PS: I know you can have 500k tax free profit and qualifying items to increase the basis.

A simple answer please.
0 votes
mkbrizzo, , Woodland Hills, CA
Wed Feb 26, 2014
Here's a tricky one. I am selling my house in Austin which is a 2nd home and stand to make a good profit. I am married to my partner Matt in California, but obviously not recognized in Texas at this time. How mush capital gains would I pay? I am the only one of the loan and title on the home in Austin. We plan to reinvest the capital in California. Is there a time period in which we need to do that in order to not pay capital gains?

Thank you for your knowledge,
Mike
0 votes
Is the second home an investment or a primary residence? Have you lived there for any 2 of the last 5 years? These are important questions. If it's an investment and you plan to reinvest in CA have you considered a 1031 tax exchange?
Don Mituzas
Http://www.donmituzas.com
Flag Wed Feb 26, 2014
sp... how much (above)
Flag Wed Feb 26, 2014
Denise Simon, Agent, Pacific Palisades, CA
Fri Jan 13, 2012
If the home is your primary residence, capital gains does not currently apply. If you sell your primary residence and make a profit, the first $250,000 of the profit is tax-free if you are single, and $500,000 if you are married. These laws may change and you need to consult with your accountant for expert guidance. Capital gains taxes currently are paid on the sale of investment properties, unless the seller does a "1031 exchange" and replace the sold property with a new one within a prescribed time frame.
0 votes
But only if you live in the property 2 years , right?
Flag Wed Sep 9, 2015
Mindy Gerste…, Agent, Scarsdale, NY
Fri Jan 13, 2012
Unless your home was an investment property a 1031 exchange does not apply to you.
The gain you are worried about a concern under the old tax laws. The new ones say something like, a married couple has a $500,000 exclusion, and a single person has $250,000 from capital gains if you have lived in your house as a primary residence for 2 out of the last 5 years. The reinvestment rule is no longer in place. So if you have a vacation home and sell it, you have to pay capital gains even if you reinvest the money.
I am not a tax professional and I advise you to seek their advice, but I am pretty sure that is what you are referring to.
Feel free to contact me directly if I can be of any further help to you.
Mindy Gerstein
mgerstein@prucentennial.com
Web Reference:  http://mindygerstein.com
0 votes
Christopher…, Agent, Tarrytown, NY
Fri Jan 13, 2012
Hi, A 10301 exchange is for businesses or investors only. Due to changes in the laws you should speak with your accountant.

Sincerely,

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
William Raves Legends Realty Group
914.406.9023
0 votes
Martina Ryan, Agent, Flushing, NY
Thu Jan 12, 2012
I believe it is 45 days to identify the property & 180 days or less to complete it. The transaction is called a 1031 exchange. Check the IRS website http://www.irs.gov/businesses/small/industries/article/0,,id=98491… it will give you the exact time line.
0 votes
, ,
Thu Jan 12, 2012
I'm pretty sure you have 12 months but like everyone said you should probably consult with your accountant.
Web Reference:  http://www.markfishernyc.com
0 votes
Anna M Brocco, Agent, Williston Park, NY
Thu Jan 12, 2012
Consult with your tax professional and or attorney, either party can best advise....
0 votes
, ,
Thu Jan 12, 2012
There is no way for a finance or real estate professional to answer your question unless he/she is also a licensed tax consultant. An accountant, tax specialist or financial planner would be your best source of correct answers. Best to you!
0 votes
Gregg Goldsh…, Agent, Larchmont, NY
Thu Jan 12, 2012
Definitely a question for your accountant. Thinking of listing your home? That I can help with. Email me ggoldsholl@houlihanlawrence.com http://www.larchmonthouses.com
0 votes
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