Where to stash proceeds from sale of home

If you're planning on using that money again in a year, then be conservative. Make your $2,400 in that savings acct with no risk.

I've always been curious about this. What's the specified time frame for when proceeds for a sale of a home have to be rolled into a purchase of a new home before the government make you pay taxes of the profit? Is there a time limit to roll the money over to a new house purchase?

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Is there a time limit to roll the money over to a new house purchase

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Not if the proceeds are from the sale of your primary residence-

There are timelines on some investment property transactions...1031 exchanges..

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If you're talking about a primary residence, there are no taxes if you have lived in the property for 2 of the last 5 years and have profited less than $250k ($500k if married filing jointly).

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This is as long as the proceeds from the sale of the home are invested into a new home therefore constituting a like-kind exchange, correct?

If someone sells for $250K when originally purchased for $200K and then buys a new $200K house, then the $50K gain would be taxable is my understanding. Are you saying otherwise?

I also recall the proceeds needing to be re-invested in a home within a year of the sale for the like-kind treatment. To be honest, it has been a number of years since I studied these specifics so hopefully one of the tax accountants on the board can clarify.

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ATLdawg25

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Fantastic post. Appreciate the clarification.

That's a sizable change in tax treatment from someone selling a personal residence. This 'liquidation benefit' could be very valuable as someone retirement plans (e.g., decides to downsize and can access the cash gains tax-free).