Selling House in CA but waiting to Buy a new one?
If we are selling a house in CA (after living there for 2 years) and moving - how long do we have to buy another house and not get taxed heavily on the money we made with the old house sale.
We are moving cities but want to rent in the new city and find a good place to live.
We heard if you sell a house and buy one immediately your money isn’t taxed as heavy. Is this correct?
What if we are holding onto the old house money soley in order to buy the new house.
Thanks !
Mail this post
Tags: house sale, money, moving cities, soley
August 30th, 2009 at 10:00 pm
when you have lived in the house for 2 of the 5 years you owned the house; if you are single you have $250,000 gain exclusion if married it is $500,000. you do not have to buy anther house good luck
August 30th, 2009 at 10:00 pm
I think the rule applies only to homes used as rental properties, but I’m not sure.
Somebody who lives up the street from me owned several rental homes in CA and sold them all but they had to list their new home for rent for twelve months before moving in to get around some tax law or something.
And well, what do you know? 12 months later, the FOR RENT sign goes down, and a Corvette and Yukon Denali go in the driveway!