Capital Gains Tax

[Helen Imhof]

Hi,

A year ago we sold our house that we had lived in for 5 years and made about 260K.  We invested some of that on a rental property and built another house.  We want to sell the new house and because we were the general contractors, we saved a lot of money on the process so we can make about 80K profit plus what we spent on the house.

We want to put the house on the market and will be moving to another country to retire, where we will buy a house to live in.  I just don't know about the capital gains tax?  If we wait two years do we still have to pay?  If we sell before that and buy property in another country then does the 1031 rule applies?