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If a house sells for a higher price than the price that was paid for it, there is an income tax due on the profit - unless you take advantage of the government regulations that allow for tax postponement.
To qualify for this postponement, you must buy another house not more than 18 months before or after you have sold. And you must pay at least as much or more for the new house as you got for the old. If you are building a new house instead of buying an existing one. you have 24 months instead of 18 months in which to move into your new home to qualify for this deferment
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