ANSWER:
There are several limited groups who can use the old 2 year rollover rule.

Typically, people with more profit than the tax free amounts who are going to buy new homes which would be tax free under the old law are hurt by the new law. For example, my dentist bought for $72,000 a home now worth $800,000. If he could use the old law, he could use the over-55 rule to knock off $125,000 of profit; and buy a new home for $675,000 and pay no tax. Can he still use the old law?

1. If you sold your old home between May 7 and 8/4/97, you can use the rollover rule OR the new law, but not both.

2. If you had a binding contract before 8/5/97 to sell your old home, you can use the rollover rule OR the new law, but not both.

3. If you bought your new home before 8/5/97, you can use the rollover rule OR the new law, but not both.

4. If you had a binding contract before 8/5/97 to buy your new home, you can use the rollover rule OR the new law, but not both.