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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15723
Experience:  15years with H & R Block. Divisional leader, Instructor
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How much time do you have to reinvest your net gains? Do you

Customer Question

How much time do you have to reinvest your net gains? Do you have to stay in a house for a certain amount of time before the proceeds are not taxed?
Submitted: 2 years ago.
Category: Tax
Expert:  Robin D. replied 2 years ago.


Reinvesting your gains outside a 1031 Exchange does not give you relief from tax on a sale.

1031 tax deferred exchanges allow real estate investors to defer capital gain taxes on the sale of a property held for productive use in trade or business or for investment. This has to be set up prior to selling and you personally cannot receive the proceeds.

If you sale your main home (owned and used as your main residence for 2 out of the 5 years prior to selling) you can exclude up to $250,000 (if single) or up to $500,000 (if married) of the gain.

Gain is difference in purchase price plus improvements and sell price less cost to sell.

Expert:  Robin D. replied 2 years ago.

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