Our current primary residence (in MD) is under contract to a property developer, and we expect to go to closing in about 24 months. If we build a new primary residence on property that we own in another state (PA) before closing on the current residence, will we still qualify for the $500,000 exemption from capital gains?
The exemption has nothing to do with buying. Only selling after owning a house for 2+ years. The rules have exceptions, but this is the general idea for gain exemption. How long have you been in your current house?