turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Beth_D1
New Member

Using proceeds on sale of rental property to pay off another rental property

We would like to sell one of our rental properties (it was a primary residence, but we have not occupied it for 2 of the last 5 years).  Can we use the proceeds of this sale to pay off a HELOC that we took out on our primary residence to purchase another rental property and avoid capital gains tax?

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply

Using proceeds on sale of rental property to pay off another rental property

No, unfortunately it does not work that way. 

 

The only way to avoid (actually defer) tax on capital gains and, most likely, recapture would be to do a 1031 exchange.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies