rjs
Level 15
Level 15

Deductions & credits

If you sell something at a profit, you have to pay tax on the profit. It doesn't matter what you do with the money.


I'm not sure you could do what Critter-3 suggested. A transaction that the company calls an exchange might just be considered a sale and purchase for tax purposes. Consult a tax lawyer if you want to try that route.


A long time ago there was a provision in the tax law that you could defer (not avoid) paying tax on the profit from selling your primary home if you used the money to buy a new home. But that provision was eliminated in 1997, and it applied only to your own home.