Clarification/Follow-up by keenu on 04/19/07 9:36 pm:
My daughter and her family are moving as her husband has taken a new job down south.
The job will be a 2 year deal and then they will move again but they don't know where yet. She was just wondering whether it would be worth all the hassell of renting it out but I told her if someone was in charge of that it would be easier and safer. This was just a general question as she is not sure what she wants to do yet. She does need to decide, though, and neither one of us knows much about these things. I was just thinking that in the long run it would be better if she hung onto the property if she is able to.
Am I to understand that the capital gains tax is not to be paid if you sell your primary residence, but only when you sell investment properities?

Clarification/Follow-up by keenu on 04/19/07 10:27 pm:
(Like I have an accountant! LOL) Their house has about doubled in value so that is a good thing. Thanks so much for your much appreciated advice!
Oh, another question...if you sell your house and you DON"T buy another primary residence then what? For example if I bought an RV to live in instead of a house?