In article ,
"Dimitrios Paskoudniakis" wrote:

WRONG. That law was replaced with the $500K limit with no requirement to
buy another house about 10 years ago or so.

It was replaced for those selling a house AFTER 1997, since I did same
BEFORE and have a house that I bought prior to the change, I still have
to keep the paperwork. That is where I got confused.
You should keep records to prove your home's adjusted basis.
Ordinarily, you must keep records for 3 years after the due date for
filing your return for the tax year in which you sold your home. But if
you sold a home before May 7, 1997, and postponed tax on any gain, the
basis of that home affects the basis of the new home you bought. Keep
records proving the basis of both homes as long as they are needed for
tax purposes.

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