Can I offset the 2015 taxes on the long-term gain from the sale of a second home if I used the gains from the sale to buy a new second home to start 2016?

alvarezjprivate — Sat, 01 Jun 2019 07:35:19 GMT

I am trying to understand whether I can offset my gains on the sale of a second home used as a vacation home as I used the proceeds to buy a bigger home? The new purchase occurred in January 2016.

Unfortunately, no. You are referring to Section 1031 Like...

HelenaC — Sat, 01 Jun 2019 07:35:20 GMT

Unfortunately, no. You are referring to Section 1031 Like-Kind Exchanges.

Exchanges of personal-use property, securities, and inventory don't qualify as like-kind exchanges.
Even if you could do it, there are strict time restrictions for declaring the exchange. It cannot be done after the fact you have already sold your property.
You also must use a qualified intermediary or other exchange facilitator to hold those proceeds until the exchange is complete.
See Like-Kind Exchanges Under IRC Code Section 1031 - IRS.gov

When you exchange (trade) business or investment property of the same nature or character (for example, vehicles or real estate), it's called a like-kind exchange. This gets reported on IRS Form 8824.

Generally, any taxable gain is deferred from a like-kind exchange, unless other non-like-kind property like cash is involved. Losses on like-kind exchanges are usually not recognized.

Related Information:

Where do I enter a like-kind exchange (Form 8824)?

topic Unfortunately, no. You are referring to Section 1031 Like... in Deductions & credits

Can I offset the 2015 taxes on the long-term gain from the sale of a second home if I used the gains from the sale to buy a new second home to start 2016?

Unfortunately, no. You are referring to Section 1031 Like...