and to compensate reduction in taxes can i entirely reinvest the distinction it being my first chateau have had it reduction afterwards the year
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{ 3 comments… read them below or add one }
the standard IRS rule is two years in the home as a personal residence. There are some exceptions for moving, changing job, etc.
You should be able to do a 1031 exchange, IF you can qualify it as an investment property.
If it was your primary residence for more than 6 months of the year, then if you reinvest the profits into another property you will not have a tax burden.
Since this is an investment property you can only defer the eventual tax hit. You do that through a Section 1031 exchange. If you simply sell outright and buy another property you’ll have to pay any capital gains taxes due.