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Wating to Buy |
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We are selling our condo and realize we might be forced to rent before we find a place we want to buy. May I wait a year or two before spending the proceeds on a new purchase? Will I be taxed on the proceeds? |
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You're never taxed on "proceeds" but only on "profit". If you've owned and occupied the place as your main residence for at least two years out of the five years before the sale, the two of you can take up to $500,000 profit free of federal capital gains taxes.
It no longer makes any difference whether you buy a replacement residence or not. |
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Edith
Originally published on May 20, 2008 |
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