Legal Question in Real Estate Law in Virginia

Profit from sale of house - what should I do?

We just purchashed a new house and sold our current house, in that order. We used money from savings for the down payment on the new house - $21,000. We made a profit of $29,000 on the sale of our current house. We don't want to get nailed by the IRS on the profit. What can we do to avoid this? Should we invest the profit? Any other options?


Asked on 8/13/03, 4:08 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Profit from sale of house - what should I do?

If your actual profit was $29,000.00 minus $21,000.00 or $7000.00, this amount is probably too small to reinvest in order to shield it effectively from federal capital gains tax and, therefore, you will probably have to pay the tax on it.

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Answered on 8/14/03, 7:08 pm


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