by laineyone on May 6th, 2005

laineyone

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I recently sold a piece of land in a residential area. I plan on buying a home in another state. How can I avoid capital gains tax or at least a portion of it?

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  • by Paula Straub on May 31st, 2007

    Paula Straub

    If it was an investment property and you did not put a strategy in place prior to close you will owe tax. If you lived in it for at least 2 of the last 5 years you will have a 250K (single) 500k(married) exclusion to offset gains. You do not have to purchase another home.
    Paula Straub
    www.savegainstax.com

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