selling primary residence

Q. if I sell my primary residence and use the proceeds to pay for my assisted living facility, is the sale proceeds taxable?

A. Simple answer: Yes.  What you do with the money, even buying a new house,  has no bearing on whether the gain on the sale is taxable.

That said, there is a tax provision for excluding some or all of the gain on sale of  your primary residence. 

The capital gain on the sale of your primary home is not taxable, up to $250K ( $500K married filing jointly). To be eligible you must have lived in and owned the home for at least 2 out of the 5 year prior to sale. You do not even need to report it on your tax return, unless you got a tax document, usually a 1099-S. The 1099-S may have been included in your closing documents, instead of arriving in the mail, in Jan. or Feb. of the following year.

https://www.irs.gov/taxtopics/tc701