Home Sales Capital Gains Taxes

[Susie Bright]

Hello folks this past Dec 2018, in Los Angeles CA, we found a great deal on a home and we bought it. Then the second week of January 2019 we sold our main home and used that money to pay the one we bought. I was told that we can save 28% or so on capital gain.

Can someone please advise me what we need to do so we don’t have to pay it? We were also told that we only have 6 months, from the time the home was sold, to capitalized on this opportunity.

Thanks so much for any tips!

Suzie

[Natalie Kolodij]

The 6 months thing isn't any thing. 

If the home you sold was your primary residence and you both OWNED and OCCUPIED it for 24 months out of the past 5 years then you qualify for the section 121 primary residence exception. 

$500k gain exclusion if you're married.