How soon do I have to re-invest the money I receive from the selling of my home?

Question

How soon do I have to re-invest the money I receive from the selling of my home?

Answer 1

You don't have to reinvest if it is below the capital gains limits of the tax code.

I believe it is $250K for an individual and $500K for a couple. Assuming you have lived in the house for two years. The amounts of the limit are profit on the house.

Answer 2

The previous answer is correct. I would like to add that even if you did exceed those limits, it makes no difference whether you reinvest or not, you still pay the taxes on the excess. Also, you need to have lived in the house for two of the last five years.

Answer 3

I agree with the first two answers.  It used to be that you had to buy a house of equal or greater value to avoid having to pay taxes, but that is an old rule.