topic Selling 2nd home in Investors & landlords

Selling 2nd home

djohnson69401 — Fri, 31 Jan 2025 17:50:45 GMT

I'm assuming that if I can't use the rental exchange 1031 or main home exclusion, I would have to take long term capital gains tax when I sell it (?). But does that exclude me from selling my main home the following tax year and use the main home exclusion?

Thanks for any feedback.

Re: Selling 2nd home

AmyC — Fri, 31 Jan 2025 19:57:57 GMT

Yes, you will have to pay long term capital gains if you are not doing a 1031 exclusion for the rental house. It has no effect on the sale of the main home. You can still take your main home exclusion provided you qualify.

If it was your main home that you lived in 2 out of 5 years, you may not need to report the house sale at all. See Topic No. 701 Sale of Your Home.
If you lived in the home less than two years, you may qualify for one of the exceptions. For further information and examples, see IRS Publication 523, Selling Your Home. Does Your Home Qualify for a Partial Exclusion of Gain.
TurboTax article - Is the money I made from a home sale taxable?

Re: Selling 2nd home

djohnson69401 — Fri, 31 Jan 2025 20:03:40 GMT

Thanks for the confirmation