Is there a way to avoid taxes on selling a property?

I have sold 2 properties this year. The one was a flip. We bought it this past november and close the end of this month. - So it is a short term capital gain.
The other is our 1st home. We bought over 3 years ago and are closing on it in October.
We are currenlty building a home and it will be done by the end of the year. Do it matter when we close on the new house? Will we avoid capitol gains if we close on it beofre the end of the year? We will be rolling the gains for the other properties into this new home.

Thank you

According to the IRS rules, you will not pay capital gains on a home sale that was your primary residence 2 of the past 5 years. There are other considerations, like "hardship" and would recommend a visit to the IRS website.

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Jim Erickson

"If you tell the truth you don't have to remember anything" ... Mark Twain

Take a good look at the IRS rules and regulations on this stuff and talk with an accountant for advice on how to handle your finances. Many people really mess up when it comes to real estate and taxes and end up paying dearly for it later on. Like Jim mentioned above there's a ton of info on the web.

Good luck with the new house!

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Mike
http://www.HousingPredictor.com
http://www.DestinFloridaRE.com
http://www.RealEstateDomain.com

Call a CPA and discuss capital gains (Jim is correct about the 2 out of 5 years). With the other property, you could consider a 1031 exchange by rolling the profits into another investment property.

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Jason Crouch, Broker
Austin Texas Homes, LLC
512-796-7653 (cell)
Austin Real Estate
Austin Texas Real Estate
Austin Homes