Home sale exclusion

[hslettel]

We want to sell our home of 30 years and build a home on a lot we own.  I just want to confirm there is no requirement to buy another home to take the sale exclusion, which in our case will be $500,000 for a married couple.  I know there is a 2 year window to buy another home if you want to, but we don't want to.

I just want to make sure I understand our financial picture clearly before we enter into a contract to build.  Thanks for your help!

[Mike9241 · Accepted solution]

that 2 years you speak of is probably referring to the fact that unless special circumstances apply you can only use the exclusion once every two years. there is no requirement that if you use the HSE you must acquire a new residence in two years. you could move to a rental or wait 10 years 

[hslettel]

I think you are saying that never buying another home is okay?  We can take the exclusion one time and be done with it, yes?

[ShirlynW · Accepted solution]

Yes, that's correct. You can take the home sale exclusion for this sale, even if you don't buy another home.