Capital Gains on Sale of Home
If I sold my house but wanted to buy a house much smailer and less expensive home for retirement do I still have to pay taxes or Capital Gains ??? on the profit that I make and do not reinvest?
Terry Says
You're thinking of an old law. The current law gives you a $250,000 capital gains tax exemption when you sell a house ($500,000 on a joint return). And you can do it as many times as you sell for a gain, after living in the house as your primary residence. It doesn't matter what you do with the money after the sale. For example, you could put the cash in the bank and decide to rent.
