home sales tax

[scofflaw71]

What is the name of your state? texas

Hello All:

I am a newbie to this forum since I just found it a few minutes ago.
I sold my home in springfield, va and made a significant profit. I have moved to austin, tx and rented an apartment while I look around to figure out where I want to buy a house. I intend to buy a house outright so I have no debt at all. I have heard that the profits taken from my house sale will be tax free as long as I use them to buy another house and that there is a one year time limit on doing this. Is this true? Can someone give me a link to the actual law which explains this? Also, what if I use some of the money to pay off credit card debt. Wil money used for that purpose be taxed? Thanks in advance for any help I can get on this.
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[FlyingRon]

Do not post in multiple forums with the same question.
"Rolling over" doesn't apply to personal residences anymore (hasn't for a while). You are eligible for a $250,000 (per owner) exclusion on the gain if you lived in the house as a primarily residence 24 out of the 60 months before the sale.

Info at the IRS here:

http://www.irs.gov/publications/p523/index.html

 

[LdiJ]

What is the name of your state? texas

Hello All:

I am a newbie to this forum since I just found it a few minutes ago.
I sold my home in springfield, va and made a significant profit. I have moved to austin, tx and rented an apartment while I look around to figure out where I want to buy a house. I intend to buy a house outright so I have no debt at all. I have heard that the profits taken from my house sale will be tax free as long as I use them to buy another house and that there is a one year time limit on doing this. Is this true? Can someone give me a link to the actual law which explains this? Also, what if I use some of the money to pay off credit card debt. Wil money used for that purpose be taxed? Thanks in advance for any help I can get on this.
Edit/Delete Message

The other response was correct, but I am just going to re-emphasize a point.

If your capital gain was more than 250k or 500k if you are married and you both owned the home, (sales price minus original purchase price of the home, minus the cost of any improvements made to the home, minus selling costs equals capital gain), then you must pay capital gains tax on the amount above 250k/500k.

If your capital gain was less than 250k/500k then you don't.

Whether you end up paying any capital gains tax or not you are free to do whatever you like with the money. You are not required to invest it in another home. However, that certainly would be a wise thing to do.