First timer here! I just sold a rental home that I use to live on and I am going to be hit with capital gains... I closed the deal on the 14th of May. I have been asking my CPA about 1031 exchanges and she keeps sending me google links... Am I allowed to still invest in a house if I find before the 45 days is up from closing? Or do I need have already had the house lined up? Also whats the process for this? I know I really need to find a new CPA for this... But looking for some quick help! THANKS IN ADVANCE!

Hi @Meghan Schubring . I hate to be the bearer of bad news, but if the property has already been sold and you have received the funds yourself, you are no longer eligible for a 1031 exchange.

How long ago did you live in the property? If you lived there in the last 5 years, you may be able to exclude some or all of your capital gains. If it was more than 5 years ago, you're looking at paying the full tax, although it's taxed at long term gains of either 0%, 15% or 20% (depending on your income) instead of short term which is taxed at your income rate. (I think, this stuff all just changed and I'm not a CPA)

There are several real estate-focused CPAs on this site if you're looking for a new one. Your CPA doesn't HAVE to be local.

Thanks for the reply I lived in the home back from November 2009-may 2012. Then rented since then. I’m going to be looking for a new CPA on here. 

@Meghan Schubring  

@Mindy Jensen is exactly right. Also, it looks like you have not lived in the home "2 of the last 5 years", so the gains will be subjected to capital gains taxes. Keep in mind that some improvements and renovations you have made over the years will likely increase your basis in the property and decrease you capital gains.

Make sure you find a CPA who specializes in real estate, rather than someone who works with all industries. There are a lot of nuances that a "generalist" can gloss over. BiggerPockets is a great place for your search!

Hope this helps!