Capital Gains on Sale of Primary Home and invest in Business?

[Justin Lovelace]

I could not find this answer anywhere.   Process of selling primary residence, but instead of investing in another property, we are looking at purchase a small business instead. Is this possible to delay or nix capital gains?  Or it can only be re-invested in another residence?  

And also, what is the time frame?  End of tax year?

[Wayne Brooks]

Look at irs section 121. Having to buy another primary residence, to avoid tax on the gain of your current home, has not been a requirement for over 20 years.

Assuming it was your primary residence from the beginning, and you have not moved out/rented it for more than 3 years, you gain is exempt up to $250k filing single and $500k married/filing jointly. Any gains above that are taxed as cap gains.