here's a scenario:
buy a primary residence for 200K, live in it 10 years.
you sell it for 1.2mil. you have a "profit" of 1.0mil
you buy a replacement home (primary rsidence again) for 500K.
is the balance of that 1.0 mil (equal to 500K) free of capital gains tax???
this is about the only way I can word this question. so, anyone with
real estate/CPA/law know about this?? I can't find a website that makes
it clear to me how it all goes down.....
thanks,
--Sherpa