topic Capital Gains Reinvestment in Investors & landlords

Capital Gains Reinvestment

Giantsmike11 — Tue, 10 Mar 2026 06:45:21 GMT

Hello, I sold some vacant land that I held for over 1 year in June of 2022. Earlier in the year I started construction on a new home (non primary residence). Would I need to close on the new home within 180 days of the property sale to safely re-invest my capital gains or would the fact that I've begun construction on the new home suffice?

Re: Capital Gains Reinvestment

rjs — Thu, 17 Nov 2022 01:55:23 GMT

Reinvesting the gain from the property sale in a new home does not have any effect on the tax on the gain. The sale of the land is a separate transaction. The tax on the gain will be the same, no matter what you do with the money.

Re: Capital Gains Reinvestment

Mike9241 — Thu, 17 Nov 2022 06:28:09 GMT

you are probably thinking of a section 1031 exchange. your home would not be qualified like-kind property. in the future, consult an attorney if you seek to do a 1031 exchange. there are many rules that must be followed and you do not appear to be aware of them.