I own a rental house and want to sell it. I don't live in the house, which is in my state of Wisconsin. How long do I have to reinvest the m...

Question

I own a rental house and want to sell it. I don't live in the house, which is in my state of Wisconsin. How long do I have to reinvest the money from the sale of this house, without high tax problems?

Answer

I suspect you are thinking about a tax-deferred exchange, but your question isn't clear.

I don't know what you mean by a "high tax problem," and whether there is any tax due depends on many factors.

If you are considering a tax-deferred exchange to avoid paying capital gains tax, there are strict requirements as to when you must identify the replacement property or properties and when you must close. There also are a series of general rules that can be implicated by, for example, the use of debt.