Updated about 5 years ago on . Most recent reply
Tax on Primary Residence sale within an year
Hello. This is my first post here. Thank you to everyone who makees this forum such an incredible resource. I've been able to find somewhat of an answer to my query below but hoping someone can confirm my conclusion.
My husband and I bought our first primary residence in July 2020 about an hour from the bay area. We just went with was available on the market and paid $700k ($200k down). Currently the asking price is around $850k (based on comps) and our 'dream house' is coming on the market for around $950k in the same area. I wanted to sell my current residence and roll the capital gains towards the new house (similar to a 1031 exchange). However, on further reading, it seems that is NOT possible for a primary residence and we would end up paying capital-gains taxes on the sale because of a 2 year hold constraint.
Appreciate if someone would clarify this understanding. I hope I'm wrong on this but looking for some tax wisdom. Thank you.