I live in California. I own a home in Orange County that I have been renting for about 2.5 years. I have been living with my parents during this time and just put my home in OC on the market. My intention is to sell It (I have about $100k in equity) and purchase a less expensive home in north County SAn Diego. I have seen in other posts that there is a ones time exclusion, but don't know enough to know if I qualify. I am a single mother and I am currently on permanent SSDI.
Someone else told me that to avoid capital gains tax I would need to purchase a more expensive home. I don't know what is true. You are the expert. Can you please help and tell me whAt is what And exactly how I can get around paying a bundle of taxes. Thank you!!