What Happens If I Sell My House And Don't Buy Another?
If you sell the house and use the profits to buy another house immediately, without the money ever landing in your possession, the event is generally not taxable.
Do I have to buy another house to avoid capital gains?
The capital gains exclusion on home sales only applies if it's your primary residence. In order to exclude gains on sale, you would have to sell your current primary home, make your vacation home your primary home and live there for at least 2 years prior to selling.
How To Avoid Capital Gains Tax on Real Estate | Rocket Homes