<p>My H and I are relocating to a new town. We are lucky that my H's company will buyout our house so we don't have to worry about not selling our present house. We are planning on buying a house in our new town but I'm wondering what will happen if we don't find a house right away. I know that I won't have to pay capital gains on buying a new house for two years but what does FA think if it takes a while to buy. Do I have to buy a house right away so that the money that we made on the house is rolled over and not available for FA? Or do I have some time to make a decision on buying a new house?</p>
<p>It is so stressful getting my present house ready to sell that I'm dragging my feet looking for new house.</p>
<p>If the profit from your home sale is in your savings account the day you file the FAFSA, it will be considered an asset like any other savings you might have. If you don't want it to be considered an asset that can be tapped for college education purposes, buy a house before you do the FAFSA...or sell AFTER you do the FAFSA.</p>
<p>I'm not exactly sure about the FA aspect of the move. I'm thinking that the money in the bank would be an asset until such time you use it on a house.</p>
<p>But what I do know is that it doesn't matter about buying a new house to avoid capital gains tax on the sale of your old house. That was the old rule. Now you don't pay tax on the gain of your house if you make less than $250,000 on a single return or $500,000 on a married filing joint return.</p>