We bought a property (let's call it as property A) in Chicago as our primary residence in 2017. We stayed there for 1 year and because of some reasons we moved to another city in Illinois and rented this property.
Now we are selling our rental property.
Few questions regarding the capital gain tax:
1. How should we calculate our capital gain tax. What will be the amount? We bought property for 470K and selling it for 515K. We have not filed for any depreciation deduction in our tax returns till date. We are married and filing jointly.
2. 11 months back we bought a home for ourselves(let's call it as property B) as our new primary residence. We have a mortgage on this property. Will property B be considered for 1031 exchange for property A?
3. If we sell both properties A and B and suppose we have capital gain tax on both, then can that money be combined together and applied for 1031 exchange to buy a single property which will be our primary residence? (this may sound crazy but unfortunately, we may have to move again).
4. Is there any way we can save capital gain tax?
