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The rollover provision was eliminated a number of years ago.

Unless you sold for one of the qualifying reasons, the entire gain is taxable. Check for an explanation.

Other than living in it as your primary residence there is no way to avoid paying tax on the gain at sale. Converting it to a rental defers the taxes but does not eliminate them.

You owned the house for less than a year, therefore, the gain will be taxed as short term capital gains. It would become long term capital gains after your purchase date in October.

You am assuming that you are estimating the gain after closing costs (some from the purchase) and selling real estate commissions.

It sounds like you get along well with your finance's mother. I would not have lived that close to my father-in-law.

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