[ajc]

I have sold my home and am building a new one to be completed in February. Should I reinvest 100% of the earnings from the sale of my home into my new one. We also have our first child on the way, should I hold on to my savings and finance as much as possible, or should I look to get a home equity line of credit when I close on the new home to cover the inevitable expenses of a new baby and home. I don't want to make bad decisions with a new home and family at risk. Thanks for any advice anyone may have.

[AtlantaTaxExpert]

AJC:

Assuming you lived in the old house for at least two years, any profit you made on the sale is exempt from taxation. You should report it on your tax return, but no taxes will be due.

For this reason, I would spend as little as possible on the building of the new house to keep your assets as liquid as necessary for upcoming expenses. Using the home equity line of credit is something that should be done only if necessary.