Related Terms Reverse Exchange A reverse exchange is a type of property exchange wherein the replacement property is acquired first, and then the current property is traded away. When do you have to pay taxes on the sale? Investing your HSA account to receive tax free growth is another way to avoid paying the capital gains tax. The Motley Fool has a disclosure policy. Having paid tax on deposits, a Roth account allows tax-free growth for the remainder of not only your life but also the lifetime of your heirs. To qualify you must have owned the home for five years and lived in it for at least two years out of the five. The capital gains tax can take a big chunk out of your profit from the sale of a real estate investment, but thankfully there are ways to get around that.