Sale of Second Home and Then Purchase of New Second Home

I had a second home and sold it September 2019. I purchased a replacement second home and closed on it in August 2019. Do I have to report the $19,000 capital gain on the home I sold, even though I reinvested it in the higher priced replacement home?

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Yes, you have to report the transaction and the gain is taxable. There is no exemption of gain for second homes, regardless of whether or not reinvest the proceeds.

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