3) Do I Need To Reinvest My Proceeds To avoid Taxes?
When you sell your old home you do not need to reinvest all, or any, of the cash received into a new home in order to avoid taxes. Since 1997, Uncle Sam doesn't care how you reinvest the proceeds (savings, vacation, car purchase, bill consolidation, etc). Any gains up to $500,000 for married couples and up to $250,000 for singles are tax free, as long as:
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