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Dave CPA
Dave CPA, Accountant
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Would I avoid tax liability on the profit (capital gains?)

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Would I avoid tax liability on the profit (capital gains?) from the sale of my home if I was to buy a new home with that money? Would I need a new mortgage on that new home in to see the tax (deduction) advantage? Would it matter what state the new home is in?
Hello,

Welcome to Just Answer

Would I avoid tax liability on the profit (capital gains?) from the sale of my home if I was to buy a new home with that money?

No that would not be the case, but you could avoid a portion of the gain if you lived in the house as your primary residence from 2 out of the last five years.

Would I need a new mortgage on that new home in to see the tax (deduction) advantage?
Yes as only interest is tax deductible.

Would it matter what state the new home is in? No

I hope this clarifies your questions. Dave
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