06-09-2007, 05:38 AM
KathH, I think that the fairly recent tax law allowing someone to live in a house 2 out of the last 5 years and have tax-free gains (up to a limit) replaced the tax law that you had to re-invest within a year to avoid capital gains. Some of the real estate people that contribute to this forum can add or correct me, but I think there's no re-invest requirement.