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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29577
Experience:  Taxes, Immigration, Labor Relations
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Sale of personal house

Resolved Question:

If you flip a house you bought (lived in it less than 2 years) at a gain, can you defer the gain by purchasing a new residence.
Submitted: 8 years ago.
Category: Tax
Expert:  Lev replied 8 years ago.

If that is your personal property and you have a gain on the sale - that will be capital gain and you owned the property more than a year - long term capital gain taxed at reduced rate - not more than 15%.

You may not deter the gain on your personal property - to defer the gain using section 1031 exchange transaction - that should be your business or investment property.

Sorry - that transaction will likely be taxable.


Even you lived less than 2 years if the main reason is moving to a new job location, health issues or some other unforeseen circumstances. Please verify the reason you are moving. See more details in the IRS publication 523 -




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Customer: replied 8 years ago.
This is even if you use the proceeds to purchase a personal residence
Expert:  Lev replied 8 years ago.

Hi Mark,

yes - that is correct - it doesn't matter how you are using proceeds.

If you are not qualified for exclusion - the capital gain on the personal property is taxable.

Sorry - if you expected a different answer.