Legal Question in Real Estate Law in Massachusetts

Re: Real estate

the rollover provision is no longer the law. If the home is your primary residence for two of the last five years, you each get a $250,000 exemption or $500,000 for a husband and wife.

So whether you rent or buy is irrelevant to your federal tax.

Re: Real estate

As previously noted, the "rollover" was under the prior law concerning capital gains on the sale of a principal residence. Now, an individual can exclude $250,000 of capital gain, while a couple can excluded $500,000 from the sale of a principal residence in which they have resided for two of the last five years - see the IRS website for details.

Things can be a bit more complicated if you used part of your house for a business and received tax advantages because of that. In that case, you should consult with a CPA.

If you need any assistance with the sales process, including drafting or revisions to the Purchase & Sale Agreement, review of brokerage agreement, and representation at closing, please contact my office.

(It is strongly recommended that you have an attorney represent you in the sale of real estate - a broker or real estate agent is not generally licensed to provide legal advice.)