selling 2nd home

[tlj721]

What is the name of your state? new jersey
my 2nd home is in s.c.
if i make a profit of 100,000 on the sale of my 2nd home what are my tax and capital gain tax responsibilities.
i used the 2nd home as rental income and personal vacation.
is there a difference if i use the money for another 2nd home.
or just use the money to pay off bills.

 

[nanomug]

Having had rental and 2nd homes I know that there is a lot more to it. How long have you owned the 2nd home? When you file your income tax, do you have it as a rental or 2nd home? Have you claimed income on the rental? If it is a rental, you can purchase another home with the procedes, but it has to be done carefully in order to comply with the exchange rules. I have never done the exchange, but my cousin has many rental properties and it has not always been a simple process.

 

[Snipes5]

It isn't simple.

Consult with an Enrolled Agent to fine out the best way to proceed. The "exchange" being referred to is a 1031 Exchange. It's complicated.

Since you are in the financial position of owning two homes, get yourself some good advice, even if you have to pay for it. You won't regret it.

If done incorrectly, this could cost you a good deal in taxes.

Snipes