tax on sale of home

[Beverly Caswell]

My kids have lived in their house for a year and are now looking to sell. I thought if they put the profit of their current home rolled over into their next, more expensive home, they wouldn't have to pay taxes. My accountant is saying that is no longer true. That no matter what, they would have had to live there 2 years. Is this accurate?

[Sharad M.]

Originally posted by @Beverly Caswell:

My kids have lived in their house for a year and are now looking to sell. I thought if they put the profit of their current home rolled over into their next, more expensive home, they wouldn't have to pay taxes. My accountant is saying that is no longer true. That no matter what, they would have had to live there 2 years. Is this accurate?

I think you are thinking of 1031 Like-Kind Exchange; however, 1031 Like-Kind Exchange doesn't apply to primary residence.

Please refer to the following website:

Section 1031 exchange

Hope this helps.