What is the reinvestment requirement when I sell my home?

Question: “I just sold my house. How long do I have to reinvest and buy another home?” Answer: There’s no reinvestment requirement when you sell your home. The law that applies is IRS Section 121, known as the Principal Residence Exclusion. Under that law, you don’t pay tax on the first 250K of gain (singles)
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Can You Avoid Taxes by Exchanging into a Property You Own?

Question: “An agent told me that if sell my triplex rental and put $$ into the other side of the duplex I live in that I can avoid taxes. Is that correct?” Answer: Sorry, but no. To defer your taxes, IRS Code Section 121 requires you to exchange into a property that you buy. You
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Adding Up Selling Costs on Your San Diego Home

Question: “We’re trying to figure out the costs when we sell our home. What are they?” Answer: As a rule of thumb, figure 8% of the selling price for all selling costs, including a cushion of 1% to 1.5% for repairs and NOT including last mortgage payment and property tax prorations. Specifically, in San Diego,
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How Long After Selling Can You Buy Another Home & Avoid Taxes?

Question: “I’d like to avoid paying taxes on the profit from my home. How long do I have after I sell my home to buy another one?” Answer: Well my friend, you’re either 1) behind the times or 2) confusing the rules for your principal residence with those for investment property: Until 1997, you had
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How Much Are Costs When Sell a San Diego Home?

Question: “How much are the costs when you sell a home?” Answer: In addition to the real estate fee, you will have: Just under 1% for title insurance, half the escrow fee, county transfer tax, HOA (homeowner association) documents (if any) and other smaller fees. An unknown amount for repairs the buyer requests that you
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Can You Sell Without Paying Taxes on the Gain?

Question: “I’ve heard about avoiding taxes when you sell your home. There’s some rule about owning and living in the house two years. My wife and I rented a house nine years and finally bought it in 2012. Then in 2013 we moved to Seattle. So we didn’t own and live in it at the
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You’re Taxed on Taxable Gain When Selling, Not Net

Question: “I have no mortgage on my home and I know when I sell I’m going to pay a lot in taxes.  Can I just put a big loan against it so I pay less tax when I sell?” Answer: Sorry, but you’re taxed on your taxable gain, not on your net. Here’s the basic
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Will You Have to Pay Tax When Selling Your San Diego Home?

Question: “Hi Gary:  My friend bought a home a year ago.  He’s getting ready to refinance it so he can get money to pay off other debts.  After he refinances he’s going to sell and get another place.  I told him he’d have to pay taxes because he’s had it less than 2 years.  But
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How to Sell & Avoid Paying Taxes on Your Gain

Question: “Hi Gary.  My wife and I plan to sell our home and we’re pretty sure we’re exempt from paying taxes on our gain.  How does that work?” Answer: In 1997, Congress gave you and me a particularly generous tax break.  IRS Code Section 121 lets you sell your principal residence and exclude all your
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Home Sales Tax After 2012: Fact or Fiction?

Not sure if you got one of these emails: “Another Obama Nightmare. Did you know that if you sell your house after 2012 you will pay a 3.8% sales tax on it? That’s $3,800 on a $100,000 home etc. When did this happen? It’s in the healthcare bill. Just thought you should know.” Answer: I’ve
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