In NYS what are the rules and laws as far as profits from a sale of a house into a new property (or not investing in a new property)?
I’m currently selling my house, will probably not be able to make any competitive offers at this time on a new home. I’m prepared to rent at first so I can take my time buying (I’m moving to a new city and not selling my house with any contingency that I buy a new home in the process). My concern is being taxed extra or having to pay penalties if I don’t turn around and buy right away. Is there a time limit to reinvest or are those taxes/fees/penalties only for the sale of houses (or profits earned) that are over a certain amount? I’m trying to figure out how much time I have to reinvest in a new home to avoid unnecessary penalties/taxes/fees. I’m sure there will be some taxes/fees but I’m specifically curious about options if I don’t buy a new property. For what it’s worth the sale of my current home is a private/personally used/single family residence (not a rental) and I’ll be buying the same (again not a rental).
The sale of the house will be hopefully between $160-$200k. I’ve been told vaguely the capital gains tax “it won’t apply to you” and “you have two years” but the people who told me this aren’t real estate attorneys so want some other feedback or guidance.