I bought my house for $247K in 2000 but refinanced and now owe $300K. I've also put in at least $12K in upgrades. I can probably sell the house for $450K, for a profit of $150K.
Should I quickly buy another property so as to avoid taxes on the profit, or should I place the profit in the bank and live off of it? (I'm thinking of quitting my job and doing non-profit work for a year.)
What are your thoughts?