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StepByStep To avoid capital gains tax when selling a house, you generally have to purchase another home within 180 days to use the funds tax-free under the IRS 1031 exchange rule. However, in cases of primary residences, if you’ve lived in the house for at least two of the last five years, you might qualify for an exclusion of up to $250,000 for single filers and $500,000 for married couples, regardless of when you buy the next home. It’s important to consult a tax professional for personalized advice based on your specific situation. krzysztof wisniewski March 4, 2025 6 min read