From what I know (I live in Mass) you dont have to pay capital gains IF you reinvest that money into another home, or property before the next tax year.

This is for DEFERRING capital gains tax. The process is called a 1031 exchange Generally after a sale, you have up to a year to re invest the money into another property. I would research the laws yourself to be sure, but I thought it had to be invested into another like property. Below as read on the www.irs.gov Generally, if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized under Internal Revenue Code Section 1031. If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized. Section 1031 does not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, or certain other assets. Like-Kind Property Properties are of like-kind, if they are of the same nature or character, even if they differ in grade or quality. Personal properties of a like class are like-kind properties. However, livestock of different sexes are not like-kind properties. Also, personal property used predominantly in the United States and personal property used predominantly outside the United States are not like-kind properties. Real properties generally are of like-kind, regardless of whether the properties are improved or unimproved. However, real property in the United States and real property outside the United States are not like-kind properties.

Capital gains is figured at around 28%. This would be just over $158,000 in taxes you might have to pay. Are you seriously asking a group of strangers to advise you concerning this much money? You need a tax professional. Call a CPA.

As a florida resident you only pay federal tax on the capital gains of your lot, you don't have to pay florida cap gain on it, but you will have to pay NJ tax on the sale of the property. Welcome to the world of multi-state returns. Yes to deferre tax 1031 exchange it. CPA