Don't mix up tax rules for real estate

One of my followers messaged me - I want to sell two condos and then buy a primary residence - i read that it’s possible if I own the home for 5 years, right?

He is mixing up two very separate issues.

avoiding capital gains on a primary residence, and avoiding them on an investment property.

for a primary residence, if you live in the property 2 out of the last 5 years, you can avoid capital gains up to 250k single 500k married.

For an investment property, if you sell one property and buy a replacement property that you identify in 45 days and close on in 6 months, those capital gains are rolled into the replacement house, and you avoid paying them.

Any questions?

#realestateinvesting #montgomeryalabama #propertymanagement #realtors #landlord #tenant