Selling and buying another condo

[rvchat]

bought our place 11 years ago for 260k. selling for 775k but will use all the 775k for a newer larger condo.

CApital gains tax? how soon do i need to purchase new place? thank you all

 

[Cheshire Figment]

Buying a new place requirement for "rollover of gain" went out in the late 1990's.

If single, you can eliminate $250,000 of gain; if married you can eliminate $500,000 of gain. Any gain above the elimination is subject to tax at Capital Gains Rates.

Formula

Contract Sales Price less expenses of sale = Net Sales Price.
Original Contract Purchase Price plus certain purchase closing costs plus improvement = Basis
Net Sales Price less Basis = Gain on Sale.

Mike (CPA)