I sold my house and made $100,000 profit that I am investing in the country club where I am purchasing a new house, membership is mandatory, does this offset the capital

[dburgess19]

gains tax?

[Texas Roger]

There is no connection between the sale of one house and the purchase of another that would offset capital gains. 

You may be able to exclude from income any gain up to a limit of $250,000 ($500,000 on a joint return in most cases).

To claim the exclusion, you must meet the ownership and use tests. This means that during the 5-year period ending on the date of the sale, you must have:

Owned the home for at least 2 years (the ownership test), and

Lived in the home as your main home for at least 2 years (the use test).

If you qualify for the capital gain exclusion, you do not have to report the gain on the sale of your personal residence on your federal tax return.  Unless the gain on the sale was greater then the exclusion or you received a Form 1099-S for the sale of the home.

See IRS Publication 523 Selling Your Home for more information - http://www.irs.gov/pub/irs-pdf/p523.pdf

[TomD8]

The country club membership is a separate asset and cannot be included in the home's cost basis.  If you eventually sell the membership at a gain, you will have to report the gain.  In that circumstance, you would usually be issued a 1099-B by the club.  Conversely, if you eventually sell the membership at a loss, the loss is not deductible.  That's because the cost of the membership is a personal expense, not an investment.