Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.
Unfortunately, selling your own and then reinvesting the money into another home does not offer relief from capital gains tax.
If you lived in the home and owned it for 2 out of the last 5 years prior to selling, you are allowed to exclude up to $250,000 of gain if single and $500,000 if married filing jointly.
That first $250,000 or $500,000 would not be taxable but you would need to apply tax and capital gain tax to the remaining portion of the gain on the sale.
The old rules allowed for carrying forward your gain and applying it to the new home basis but those rules are obsolete.
If this were not your home (investment property or rental use property) and you wanted to sale it and defer gain you could look at a 1031 exchange. You would want to make sure to follow the 1031 rules exactly which prohibit your receiving the money and making the purchase yourself.
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