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Buy primary home before selling original primary home - Capital gain taxes

If I buy a property before selling my primary home can I still write of my capital gains? This is a reverse mode. Normally when a primary home is sold one can write-off gains during next primary home purchase. Here I am thinking of buying a new home using personal finances and then sell my existing primary home to move in the new one. Considering in this transaction new home will be bought before my old primary home sold-it can take me 2/3 months to sell my original home, can i still write off gains in selling original primary when I file taxes.

Reply to
rajesh
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The rules have changed. As long as you live in a house as your primary residence 2 out of the past 5 years, you don't have to pay tax on the first $250,000 or cap gains (individual) or $500,000 of cap gains (joint). This is regardless of whether you buy another house or not, or when you buy another house.

Reply to
PeterL

You're thinking old law (pre-1997), and even then, the rule for the carryover of basis was a the purchase of a replacement property within 2 years, which meant BEFORE OR AFTER.

Under current law, replacement is not needed. As long as you used it as your primary residence for 2 of the past 5 years (for which the courts have counted days - 730 days required), you get up to a $250k exclusion ($500k if married filing jointly).

Reply to
D. Stussy

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