Rental Property Sale Proceeds Applied to another rental property mortgage

[bridgeslucy]

I am selling a rental property I have had for 25 years and would like to apply the proceeds to another rental property that I have had for 20+ years. Can the proceeds from one be applied to the mortgage of the other to avoid paying Capital Gains? thx

[DavidD66]

No.  The only way you can defer the gain on the sale of a rental (investment) property is to do a 1031 Exchange, which requires purchasing a new investment property.  For more information see the following TurboTAx Help Article:  What is a like-kind (Section 1031) exchange?