sold rental house. How long do I have to purchase another to avoid capital gains tax?

[Richard McK]

one professional says I have only 6 months to repurchase.  My time will be up on 10/30/19.  ...NEED SOME HELP.  thnx.

[tagteam]

Here is the problem, simply put:

If you actually or constructively received money for the relinquished property (the rental you sold), the transaction is a sale and not a deferred like-kind exchange. If that is the case, it is too late to effectuate a like-kind (1031) exchange).

See https://www.irs.gov/irb/2010-12_IRB#RP-2010-14

Generally, an intermediary (QI) is used to facilitate a 1031 exchange (typically, the intermediary acquires the relinquished property from the owner, transfers it, acquires the replacement property and transfers that property to the owner of the relinquished property).

[Carl]

If you sold rental property at a gain (as opposed to a 1031 exchange) then there is no deferment of gain. It's taxed, regardless of what you do with that gain, or when you do it.

[SweetieJean]

Ask this "professional" to cite the section of the IRS code that says this.

[astridwilson]

To receive the full benefit of a 1031 exchange, your replacement property should be of equal or greater value. You must identify a replacement property for the assets sold within 45 days and then conclude the exchange within 180 days.

[beauguard]

How long do I have before I need to pay tax?

[VictorW9]

The house will have to be your main home and you need to live there for at least two years before you can qualify for capital gains exclusion.

[Anonymous]

that provision is long gone unless you did a 1031 exchange.  if you already got the proceeds you are out of luck.   basically under 1031, you can't touch the cash. all of it goes towards the replacement property because any you receive results in taxation. you must use an exchange trustee and there are also rules regarding what happens if there's a reduction in the mortgages carried on the old vs new property.    see a lawyer, if you want to use it next time.