Does anyone know if there is a hardship option when it comes to capital gains on a second home, if the sale is due to a job loss?
there is no partial exclusion when you don't own and live in a home that is not your primary residence.
Also, we know we can deduct realtor commissions and any improvements we made to the property from the profits, but can we also deduct closing costs from the purchase of the home when calculating capital gains? yes - you can also deduct other closing costs that you incur when you sell for example transfer tax, inspection fee, warranty fee
Finally, if we roll over the profits into our primary home (paying down the mortgage) does that have an impact on our capital gains tax burden? no
you can use the cash from the sale of your second home for anything you want, but it will not reduce the taxable gain.
