Tax Ramifications For More Expensive Home?
Okay Tax Buffs, is there any truth to this:
If i buy a home for 100 grand and live in it for 3 months and get lucky and sell it for 150 grand......Is my 50 grand profit totally tax exempt IF if buy or build another home for 150,000 or more. And if so, what is the time table that I must make my next purchase? This question refers to strictly a residential home in which I lived in and the next home I will live in again. (in other words this equation does not involve the 1031 rule for investment props). Thanks all!!
The only exclusion you may have is if you sold the home because of change in employment, health reasons or unforseen circumstances. If so, you can take a part of the exclusion (250k single, 500k married) for the time that you did live in the home.