I sold my condo last year and I am renting now. Is there a deadline for me for me to reinvest the sale proceeds?

[VolvoGirl · Accepted solution]

No.  It doesn't matter what you do with the proceeds anymore.  Starting in May 1997…..For a primary home, if you owned and lived in your house for 2 out of the last 5 years when you sell you can exclude the gain up to $250,000 for single or 500,000 for married from tax.  You can not take a loss on your tax return. The rule about rolling over the gain to the next house went out in May 1997.

[smaruvada]

Thank you so much! I actually made 300k because I lucked out with a desperate buyer. Am I in trouble for the “extra” 50k?
Thanks for your help!

[VolvoGirl]

Did you report it on your return?  Did you get a 1099S for the sale?  You are single?  Did you add any improvements to increase your cost?  Think back.

[smaruvada]

Yes, yes, yes and yes. I lived there 11 years and put plenty of work into it.