Legal Question in Real Estate Law in California

I am planning on selling my house that's already paid for to purchase a new one. How much time do I have in between selling it and buying a new one to avoid paying any taxes. Also, all my utility bills are in my brother's name, who's my roomate. I bought it 3.5 years ago. How do I prove that I've lived in it all along to the IRS, etc?

Thank you.

Asked on 6/16/12, 9:39 pm

2 Answer from Attorneys

Timothy McCormick Libris Solutions - Dispute Resolution Services
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There is no time limit, because there is no way to avoid taxes on it by purchasing a new property. Either you owe capital gains at the time of sale or you don't. In the old days, personal residences could be rolled over tax free, like a 1031 exchange of investment real estate. For some time now, however, there has simply been a blanket exemption on taxes on the first $250,000 of capital gains for single tax payers and $500,000 for married couples and registered domestic partners. Anything over that you pay tax on, no matter what you do with the proceeds.

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6/20/12, 11:36 am

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