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StaggeringMediocrity t1_j6m5gv5 wrote

Reply to comment by majortom300 in I'm considering selling my home, renting for a year, then buying my second home in order to avoid some of the stress of trying to sell and buy at the same time. Is this a bad idea? by youAtExample

What you're thinking of is a 1031 "like-kind exchange" which only applies to investment properties. Investment properties are taxed different from your primary residence or even a second home.

For a qualifying primary residence - where you lived there for 2 of the last 5 years - you automatically get a $250,000 capital gains exclusion, or $500,000 if married.

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