My father-in-law is selling his 2nd home and needs to know how long he can hold the proceeds before taxes will be due? This property has not been operating or declared as a rental, so 1031 is not applicable. Are we correct in assuming that as long as the money is reinvested in 2018 then no taxes will be due for the proceeds of the sale in 2019?
@Cedric Van Duyn if you sell for a gain it’ll be taxed in 2019. I don’t think this would get the tax breaks you get for a primary residence
Reinvesting the funds has No bearing on taxes on the gain......the only time that applies is if you were doing a 1031.
They will be due on his 2019 tax return.
@Cedric Van Duyn , the gain is recognized on the day you sell the property. If you sell in 2018 then tax will be due with your filing of your 2018 return in April of 2019 unless sooner by virtue of required estimated taxes.
Yes, I meant on 2018 Return, in 2019.