Capital gains on sale – how long do you have to reinvest proceeds?

We are selling our apt but now are having title problems with the house we are planning to buy – so the house could fall through, but we’re probably going to go through with apt sale anyway.

Question is: is there a time limit within which we have to invest capital gains into another primary residence? That is, if we don’t buy a house within 1 year, will be charged tax? Our accountant said this rule no longer exists, so we have no time limit – but I just wanted to double-check.

Also, is the maximum deduction of profit (before capital gains tax kicks in) $500K for a couple?

By housesearcher | 03/19/2008 5:23 PM