If a taxpayer sells his personal residence and purchases a new residence, realized gain may be recognized.

Question

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The sale of a personal residence can result in recognized capital gain, but there are certain exceptions and exclusions that may apply. One such exclusion is the primary residence exclusion, which allows taxpayers to exclude up to $250,000 ($500,000 for married filing jointly) of the gain from the sale of their primary residence if they meet certain ownership and use requirements. If the taxpayer purchases a new residence, the gain from the sale of the old residence may still be recognized, though it will depend on various factors such as the amount of gain, the length of time the taxpayer owned and used the old residence, and whether any exclusions or deferrals apply.

If a Taxpayer Sells His Personal Residence and Purchases a New