Sellers no longer need to buy a house equal to or more expensive than the home sold to avoid tax on the gain.
Sellers can bank the profit without buying another house.
Sellers can take a tax free gain every two years, as long as they lived in the home for two of the five years preceding the sale. New Law is effective for homes sold after May 7, 1997. Self-Employed last 2 years personal tax returns last 2 years corporate or partnership tax returns year to date profit and loss statement Real Estate Owned value of property lease agreement with terms names and addresses of lenders monthly payments, balances and account numbers Personal Assets year, model and value of cars cash value of life insurance stock and bonds value value of furniture, jewelry, etc. Initially the buyer will be pre-qualified by a mortgage representative to establish the price range you should be looking in. Once you find your dream house your agent will type up a contract offer with the price, closing date, mortgage amount and other particulars and will then present the offer to the seller.