First-time home seller, here. I’m planning on selling my house in the next couple months. We’re going to use the profits from the sales to pay off debt and make a down payment on our next house. Do the profits from house #1 go directly into my bank account at the conclusion of the sale so that I can choose how to use them myself, or do they go into some kind of escrow account where the bank holds the money? I just want to know so that I can plan accordingly for debt payments and moving expenses, and such. Thanks in advance.
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Be aware of capital gains, how primary residence, and homeowners exemptions work if you choose to not reinvest all of the capital in a new house.
In short – you greatly reduce your tax liability reinvesting the profits into a new primary residence. See: [this explanation.](https://www.rocketmortgage.com/learn/can-you-avoid-capital-gains-tax-by-buying-another-house)
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