Lisa,
Not anymore. That was the law prior to 1997. However, it is no longer the case.
There is a provision in the IRC for what is called a 1031 exchange, where you can defer gains by purchasing a replacement property, but that only applies to property used in a trade or business (such as rental property). It is not applicable to a personal residence. In addition, to perform a 1031 exchange there are strict guidelines and timelines on the use of the funds and you cannot apply them after the fact.
There is also a new provision in law regarding Opportunity Zones where you can defer capital gains tax by investing the proceeds in an Qualified Opportunity Fund. However, you only have 180 days from the date of sale to do this. Also, be aware that this form (8997) is presently not supported in TurboTax. Here is some IRS information on Opportunity Zones: https://www.irs.gov/credits-deductions/opportunity-zones-frequently-asked-questions
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
