Help me grow my pockets...First time seller.
Hi All,
It's a season of many "firsts" for me. First time poster and first time seller. I'm grateful in advance for any advice/guidance, etc. I'll explain my current situation and follow that up with three questions.
Situation: Currently own a condo and selling for the first time in Seattle, WA. This is been my primary residence more than 2 out of the last 5 years. I'm married and file taxes jointly with my wife. Our profit will not exceed $500k. Goal is to buy a single family home.
Question 1: Must I do anything to avoid paying taxes if my profits do not exceed $500k or do I just sell and go on my merry way?
Question 2: Must I use all of the profit toward a new home or can I save a portion for rehab or invest it in another project?
Question 3: Does a 1031 Exchange apply to my situation?