Well, I would appreciate anyone that can answer this question for me. Actually,this is probably an easy question for everyone, but I just don't know much about real estate law. I recently purchased a new home, and have been living in it for only 3 months. However, I just saw another great community that I want to get into. The question I have is...will I have to pay capital gains tax because I haven't lived in the house for 2 years before I decide to sell it. I always thought that as long as you purchase another house after you sold the first one, you don't get hit with the capital gains! Am I wrong, because a friend a mine told me that it isn't smart because I would have to live in the house for at least 2 years!!!

 

Correct. Two years, then the gains are tax free. Otherwise, prepare to receive the cawkage.