Have Finance Questions? Ask a Financial Expert Online.
Hi. My name is ***** ***** I will be happy to help you.
Not using the property as your primary residence for at least 2 out of 5 years prior the sale only means that you will not qualify for the 250K exclusion, unless you qualify for an exception (and partial exclusion). Depending on your sales price and your basis (purchase price, improvements, expenses of sale) you may or may not have capital gains. Unless you live in a hot real estate market, you will most likely not have huge capital gains.
You cannot avoid capital gains by reinvesting the proceeds into another primary residence any more.
You cannot escape capital gains by reinvesting the proceeds into your new home any more. How much did you pay for the house and how much do you think will be your closing costs? Any major improvements you made to the property?
I see you read my respond. Do you have any questions? Is there anything else I can help you with today?
And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.